A well-loved Earlsferry pub went bust owing HMRC £300,000 after owners felt forced to do their own accounts as the cost of lockdown took hold.
Wilson and Fox Pubs, the company which operated the popular 19th Hole in the East Neuk village, was forced to close the establishment in August.
A report by liquidators JT Maxwell details how owners Michelle Wilson and Stuart Fox struggled to pay bills following successive blows brought by coronavirus and the cost-of-living crisis.
They also chose to do their own accounts to save money, but it was later discovered they owed much more tax than they thought.
The firm employed around 22 members of staff, according to the firm’s most recent published accounts.
Accounts show the pub had a turnover of more than £625,000 in 2023, but still reported a pre-tax loss of £61,900.
Wilson and Fox Pubs Ltd owed HMRC £294,205 and other creditors close to £150,000, including £50,000 to Bank of Scotland.
19th Hole’s £300,000 tax bill
In the insolvency report, director Mrs Wilson detailed how lockdown, a downturn in trade and crippling business costs resulted in them having to close.
She said: “In March 2020, the commencement of Covid meant the business had to cease trading of the restaurant in order to adhere to the government restrictions to combat the spread of coronavirus.
“To combat this, the (pub) offered takeaway and off-license services.
“During this period, the company made use of the bounce back loan scheme.
“The company struggled to pay its accounting fees during this period and as a result, began doing their own accounts.
“When the company took on new accountants, it was discovered that the company owed substantially more in HMRC liability than they had previously thought.
“Following the return to normal working conditions, there has been a significant drop in trade through the sector as whole.
“The summer of 2023 was particularly poor, as bad weather led to trade being significantly down on expectations.
“As a result the company has faced major cash flow struggles.
“We reduced staffing levels, entered into a payment plan with HMRC and (the directors) stopped taking a salary.
“However the company has now defaulted on its arrangement with HMRC and (I) came to the decision (we) could no longer continue to trade.”
19th Hole forced to close
The Courier reported in August how the pub suddenly closed.
Customers lamented the loss, describing the venue, which overlooks the Earlsferry Thistle golf course, as “amazing”.
And in an emotional social media post, Mrs Wilson thanked staff and customers.
She said: “We would firstly like to thank all of our wonderful staff.
“They have been the best team to work with, we wish them all the very best for the future.
“Our biggest thanks must go to you, our loyal customers.
“You have supported us through some very challenging times over the last five years.
“It has been a pleasure serving you all.”
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