A businessman has been jailed for almost two years after he failed to pass on to the revenue deductions from staff wages or declare his own tax.
Leeds Crown Court heard Andrew Taylor’s offending was discovered after one employee of A T Fibreglass Production in Brighouse got a new job and contacted HMRC about documentation.
Laura Addy, prosecuting, said it then emerged that although Taylor had been making PAYE and national insurance deductions from his 10 employees, shown on their wage slips, he had not passed them on to the revenue.
She told the court the staff provided copies of their slips which revealed £92,330.24 had been deducted between April, 2010 and April, 2014.
She said it was clear Taylor was aware of his obligations because he had operated previous businesses.
He was registered for self-assessment for tax and inquiries were also made into his finances. She said it was difficult to know how much he had evaded paying but business records showed between February 2010 and June 13 the firm had supplied over £1m in trade to one firm alone.
Checks were made on the money he had withdrawn from the firm and it was assessed £60,000 in tax had not been declared or paid.
When Taylor was interviewed in January 2016 he admitted deducting tax and NI from staff. He said he had hoped to pay his own tax but was unclear how much was owing and accepted he had paid his mortgage and other bills through the business account.
Adam Walker, representing Taylor, said he previously had a loyal accountant who dealt with finances but he unfortunately died in 2007, a year before A T Fibreglass was set up. He took on staff in 2010 when he was given a contract by a bus company.
Unfortunately, having arranged a fixed price, as a result of an EU directive the Chinese materials he used went up by 40%. His customer would not increase their price and he just “bumbled” along hoping money owing to him would cover the costs.
He was also somewhat distracted for a time through his involvement with a social club which owned Brighouse FC’s ground. If he was jailed he would be declared bankrupt, lose his home and that would severely affect his wife and daughter.
Taylor, 59 of Denham Street, Brighouse admitted cheating the revenue of a total of £152,993.34.
Jailing him for 22 months, Judge Robin Mairs said: “You knew your obligations.”