An Essex accountant who sent in fake VAT returns for five years to evade nearly £100,000 in tax has been sentenced to 10 months in prison, suspended for two years, and a curfew restricting his movements from 6pm to 6am for six months.

Following an HMRC investigation Martin Kennedy, who was a member of the Association of Accountant Technicians (MAAT), admitted suppressing client business transactions by £93,799 between December 2007 and June 2012. This resulted in the non-payment of £99,651 in VAT.

During the investigation, Kennedy stated that if he had declared the right amount of VAT, he would have been left with a zero bank balance and would have been unable to pay his staff. However, HMRC established that Kennedy purchased his marital home for £280,000 and acquired a large number of shares while continuing to submit false VAT returns.

Paul Barton, assistant director of criminal investigation for HMRC, said: 'Kennedy made deliberate and sustained attempts to fake his VAT returns, to fund a lifestyle well beyond his means. He seemed to believe that as an accountant he was untouchable, but instead has learnt the hard way that crime does not pay. As well as a criminal record, his reputation and career are in tatters.'