A Kirklees businessman has been jailed after he cheated the Revenue of more than £300,000 in Value Added Tax.

Ian John Coleman failed to declare the true income of his Top Gear vehicle repair company in Cleckheaton and underpaid the tax over an 11 year period, Leeds Crown Court heard yesterday.

Simon Clegg prosecuting said Coleman, the sole proprietor of the firm on the West End industrial estate, had to pay some extra money in 2002 because of an inaccurate return but failed to heed that warning.

Over the following years he submitted returns which were fraudulent in three different ways, he failed to declare money from scrap sales, failed to correct central assessments which he knew were too low and under-declared the income of the business.

Mr Clegg said inquiries revealed as a result of not declaring the sales to two scrap companies £15,827 had not been paid.

As a result of his failing to submit some returns estimates had been made based on previous figures. He should have corrected them if they were inaccurate but he chose to pay the lower amount knowing he was benefitting, £72,617 should have been paid through that.

Leeds Crown Court
Leeds Crown Court

Finally when his books were seized it was possible to see the true income and that he had paid VAT on only two out of three months while claiming back the full three months in expenses. That led to a benefit to him over the 11 years of £215,000.

Mark Rhind representing Coleman said he was a hard worker who had initially had some cash flow problems. He had not intended it to lead to such offending of which he was deeply ashamed.

He employed nine people and it was hoped that one of his staff would be able to keep the business going if he was jailed.

The money had not been used to fund any lavish lifestyle for his family but had been put back into the business.

He was known for supporting his local community and intended to fully repay the debt.

Coleman, 53 of Knowler Way, Liversedge, admitted 12 charges of evading VAT.

Jailing him for 32 months Recorder Richard Woolfall said the offences had involved sustained and deliberate fraud and the extra cash had no doubt helped his business.

“This is clearly not a victimless crime. Everyone suffers especially in these difficult financial times - hospitals, schools and similar establishments suffer if the pot is diminished.”

After the case Martin McDonnell said for HMRC: “Coleman thought that he’d found a way to exploit the tax system. He was wrong and now he’s paying the price with a jail sentence. This is money that should have been funding vital public services and Coleman created an uneven playing field for his honest competitors.”

“Most people pay the tax they owe, when they owe it, but a small minority think they are above the law. Tax fraud is a serious crime and I ask anyone with information about those who may be involved to contact our 24 hour hotline on 0800 59 5000.