AN ACCOUNTANT who stole almost £¼m of taxpayers’ money has been jailed.

Colin Hippey – who ran Colne Valley Financial Centre which had addresses in Golcar, Milnsbridge and Aspley – was jailed for 18 months for tax fraud.

Now there are moves to try to recover the cash.

And firms who employed Hippey are busy checking their own books.

Hippey, 37, set up fake business transactions between his company and a Spanish business to falsely reclaim £238,461.02 in VAT between May, 2006, and April, 2008.

Hippey – who declared himself bankrupt in December, 2008 – was jailed at Leeds Crown Court after admitting VAT repayment fraud.

Former Inland Revenue employee Hippey, of Drub Lane, Cleckheaton, was an accountant for several companies in Huddersfield and across West Yorkshire.

None of Hippey’s former clients wanted to be named.

One of Hippey’s clients said: “I was shocked and worried.

“I’m sure my company is okay. I’ve looked through my accounts and they add up but it was rather strange that other people were saying he was poorly when he was in jail.”

But another of his Huddersfield clients said: “He did an okay job as he did for several other people. His qualifications checked out and we had no reason to believe that it would impact us.

“It came to us as a shock that he was defrauding the Inland Revenue, least of all because he was an accountant.”

The Inland Revenue said it would be attempting to recover the money through the Proceeds of Crime Act.

The case for a recovery of Hippey’s assets will be heard at Leeds Crown Court on September 17.

But it is unlikely much money will be recovered as Hippey had declared himself bankrupt.

A spokesman for the Inland Revenue said: “This case clearly demonstrates the lengths to which people will go in order to avoid their tax responsibilities.

“Tax fraud is a serious criminal offence and, as demonstrated by this case, the justice system looks to impose harsh penalties, including custodial sentences.

“HM Revenue and Customs remains committed to ensuring that both individuals and businesses meet their tax obligations and will continue to seek out, challenge and in the most serious cases prosecute those who abuse the system.”