Lifestyle of Blackpool bar owner jailed for £5m tax fraud exposed including Rolls Royce and Versace dinnerware
The extravagant lifestyle of a Blackpool nightclub owner Paul Kelly has been laid bare, with luxury yachts, Rolls Royce cars and £2,000 Versace dining set all bought with money stolen from the public purse.
Kelly, 63, was jailed for eight years in July 2025 for a £4.9 million tax fraud, using the proceeds to fund his lavish spending.
Accountant sentenced
His accountant, John Parry, who helped him evade millions in tax was sentenced to two years and nine months at Preston Crown Court today.
HM Revenue and Customs (HMRC) said Parry “abused his position of trust” to assist Kelly in defrauding clients, staff, and the taxpayer.
A spokesperson added: “This sentence serves as a warning to any corrupt professionals who wrongly believe they can use their knowledge to commit or help others commit fraud.”
Extravagant spending exposed
Kelly submitted fraudulent VAT returns and deducted tax and National Insurance from employees’ salaries but failed to pay HMRC.
He spent hundreds of thousands from the proceeds on luxury items, including a yacht, Bentley and Rolls Royce cars, a £100,000 watch and a £2,000 Versace dining service.
Zoe Gascoyne, Deputy Director of HMRC’s Fraud Investigation Service, said: “Tax fraud is never a victimless crime. The eye-watering sums spent on cars and jewellery should have been funding public services.”
Arrest and investigation
Kelly was arrested at Gatwick Airport in November 2018 upon returning from Barbados, with Parry interviewed the same day.
Searches uncovered large sums of cash, including £29,190, 6,283 US dollars, 3,000 euros, and 800 Singapore dollars. The money was seized and forfeited in September 2019.
Further searches at Kelly’s business premises revealed digital files proving he underdeclared VAT across multiple bars for six years.
Kelly and Parry were convicted of cheating the public revenue and perverting the course of justice after an eight-week trial at Preston Crown Court in April 2025.
Action is underway to recover the proceeds of their crimes.