Fraud: Convictions & sentences - 31 August 2021

Table of Contents

Director jailed for £250k VAT fraud

  • A company director has been jailed for fraudulently claiming £251,499 in VAT repayments for windows
  • Director was sentenced to two years and two months in prison.
  • HMRC discovered that the invoices used to support the claims were false.
  • HMRC, said: ‘Paying tax is important for everyone, it funds our schools, hospitals, and all our social services.

Financial controller jailed for £719k fraud

  • A financial controller has been jailed after claiming £719,000 of fraudulent VAT claims through his company and moving the money into his bank account over seven years
  • Financial controller took advantage of the bulk payment process.
  • The fraud remained undetected until financial controller took annual leave.
  • Money used to purchase luxurious amazon packages and to fund a gambling lifestyle.

Directors banned over £1.3m withheld from creditors

  • Two investment brokers have been disqualified for 12 years after transferring over £1.3m into personal accounts while ignoring the company’s creditors
  • Company entered into liquidation which triggered an investigation by the Insolvency Service.
  • Directors must treat all creditors fairly when they know their company is insolvent.
  • This failing led to them each being banned from acting as a director for a significant period of time.

Director avoids jail over inadequate company accounts

  • A company director has been given a suspended sentence for failing to keep adequate company accounting records including keeping records of bank transactions
  • Director was sentenced to 8 months in prison, suspended for 12 months, and was given 150 hours of community work.
  • It was not possible to verify what the company’s income and expenditure.
  • There were also numerous other payments out of the company’s bank account.

Wise co-founder charged £365k for ‘deliberate tax default’

  • The co-founder of Wise, the listed money transfer company, has been given a £365,651 fine by HMRC for a ‘deliberate default’ on his taxes in the 2017-18 tax year
  • The penalty from HMRC means that he has been found to have either deliberately provided inaccurate documents.
  • HMRC cannot explain the details of co-founder’s default due to strict confidentiality rules about what may be disclosed.

Construction boss banned for missing £700k

  • A construction director has been banned for seven years after failing to explain more than £700,000 worth of expenditure
  • Director has been given a seven-year director ban from the Insolvency Service.
  • The liquidator requested to see the company’s accounts, but director failed to cooperate.
  • The liquidator was unable to establish the location of more than £716,000 worth of expenditure, including cash withdrawals of £16,000 from the company’s bank.
Convictions & sentences
Convictions & sentences

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