Cheryl: ‘It’s so humiliating’

Tax avoidance is NOT a good look for the singer

Cheryl tax avoidance

by heat staff |
Updated on

When she sang No Good Advice, it turns out Cheryl was referring to her accountants. We joke, of course, but last week, the singer suffered a huge blow to her ego, her reputation and – most especially – her bank balance, after a court ruled she had used a “tax avoidance scheme” and owed a substantial amount to HM Revenue and Customs.

It means our Chezza could be looking for a big pay day ASAP, even if that means gulp doing reality TV…

Cheryl tax avoidance
Cheryl owes a substantial amount to HMRC ©Getty

“This whole thing has been so embarrassing for Cheryl,” says an insider close to the former Girls Aloud star, who also enjoyed five No1 solo singles. “She’s always been very guarded about her personal life, never mind her financial affairs. She’s very proud and image conscious, so she’s finding all this really difficult to deal with. And that’s all aside from the reality of a huge tax bill. She’s incredibly stressed out.”

HMRC began investigating the 38-year-old’s tax affairs back in 2019, but the long-running case was resolved last week, with a judge ordering Cheryl to pay back an unknown amount of backdated tax – plus interest. It was revealed how the star had set up a personal company, CC Entertainments, back at the height of her noughties fame, in order to avoid paying income tax and national insurance (and instead paying lower-rate capital gains tax).

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But, we’re told, it’s not just everyone knowing about her business that’s bothering the star. The mum of one has strived to maintain her relatable image. Only last month she revealed she does her own housework and nursery pick-ups for her son Bear, four.

Our insider says, “Cheryl’s always prided herself on staying true to her working-class roots. She’s particularly proud of the charitable foundation that she’s set up, which helps disadvantaged youths in Newcastle. Being involved in tax avoidance makes her seem like just another rich celeb who doesn’t want to pay her fair share – this is a blow to her reputation.”

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Of course, the biggest thing for Cheryl right now is working out how she’s going to pay this mega-tax bill. Apart from her role as the face of Feel vitamins, she’s very much stepped out of the public eye the past couple of years, and her company registered only £120k of profits in 2020.

We’re told, “It’s looking like she’s going to have to earn a significant amount over the next few years to build up her savings again. Her last attempt at a music comeback was self-funded and didn’t do so well, and although she was sought after as a TV presenter, she’s turned down a lot of work. Cheryl’s always said she would never ever do a reality show like I’m A Celeb, but she might end up changing her mind.”

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