Kandasamy Ganeshkumar was required by HMRC to pay a security bond totalling £83,463, known as a ‘Notice of Requirement’ to protect taxpayer’s money against any future tax defaults or company losses, based upon his previous trading history.

Ganeshkumar failed to pay the bond and continued to make taxable supplies, running up VAT debts of more than £100,000.

He admitted one offence of making taxable supplies, while the bond remained unpaid, at Hammersmith Magistrates Court on 12 September.

He was fined £800 and ordered to pay £380 costs.

Mark Cox, assistant director, Fraud Investigation Service, HMRC, said: ‘Ganeshkumar was given the opportunity to continue trading legitimately but he chose to flout the law. It is only right that we tackle those businesses who fail to play by the rules by taking such action.’