A businessman who owned a town centre bar failed to pay more than £21,000 in VAT, a court heard.

Balraj Bhullar ran the ‘unsuccessful’ Bailey’s Bar on Church Street in Accrington but failed to pay the VAT for four years.

Burnley Crown Court how the 38-year-old got into ‘substantial financial difficulties’ and committed the offence out of a ‘misplaced desire to try and turn the business around’.

Bhullar pleaded guilty to being knowingly concerned in the fraudulent evasion of VAT between May 2009 and May 2013.

Andrew Petterson, prosecuting, told the court how Bhullar acted as the ‘sole trader’ of Bailey’s Bar and registered it for VAT in 2009 but failed to pay.

An investigation was carried out by Her Majesty’s Revenue and Customes (HMRC) following a failure to provide notice of information to them.

When he was arrested the father-of-five gave ‘full and frank admissions’ to HMRC officers and said he had ‘financial difficulties with the bar’.

Mr Petterson told the court: “There is some evidence from the papers that would tend to support that as well, namely the defendant registered the property through the brewery and they renegotiated the rates and gave a substantial discount to him across that period.”

Richard Veni, defending, said Bhullar was ‘really ashamed and repentant’.

He said: “The offence itself is committed through a misplaced desire to try and turn the business around. He has suffered substantial financial difficulties which has left him in dire straits, if not quite in ruin

“He business itself was bought for £100,000 and raised through him re-mortgaging his house.

“During the troubled time he borrowed substantial sums from friends, family and credit cards, amounts that are still remaining today.”

The court heard how Bhullar, of Bacup Road, Rawtenstall, now works for a job agency and is ‘trying is hardest’ to repay outstanding debts.

He was jailed for six months, suspended for 18 months with a curfew order and the court was told how the order will run for three months from March 9 once he has moved into in new address at Whalley Road, Clayton-le-Moors.

Sentencing, Judge Anthony Russell QC said: “You have been very foolish in dealing with your affairs in this way.

“This is a sign of a business that was not very successful and a business that failed. You suffered considerable financial loss as a result and it’s most unfortunate that you didn’t recognise the situation you were in much earlier and avoid getting involved in this criminal offending.

“You have not only let yourself down but your family down.”