A PUB landlord narrowly escaped jail after he pocketed drinking profits and ran up a £165,008 tax bill.

Kenneth Taylor, 64, has been forced to sell The Dolly Peel pub, South Shields, Tyneside, to pay back the cash.

Newcastle Crown Court heard how Taylor had owned a string of pubs across the region, but had paid no tax since 1992.

Prosecutor Alec Burns told the court how Taylor knew he should register as a sole trader after buying out his business partner in 1992, but never did.

On numerous occasions his accountant tried to make him fill out the forms, but the court heard how Taylor treated the money as an "unofficial loan" and said he would pay the tax whenever he sold the pubs.

The court heard how Taylor, of Rekendyke Lane, South Shields, who pleaded guilty to tax evasion, will now sell his one remaining pub.

Robert Mitchell, defending, said: "This is not a man who had not registered for VAT and was sweeping it under the carpet and keeping the money for himself.

"He acknowledged his liability, and went so far as to have figures entered in his annual accounts."

Taylor's 19-month jail sentence was suspended for two years after the court heard that he planned to pay back the cash after selling the pub