Businessman sentenced for £180k tax fraud

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A Leicestershire businessman, who hid sales to evade paying £180,000 in VAT and corporation tax, has received a suspended prison sentence, following an HMRC investigation

Mark Hammond hid sales to evade paying VAT and corporation tax for two companies that traded as The Blacksmith Arms bar and restaurant. HMRC discovered that Hammond failed to declare cash payments and submitted fraudulent VAT returns over a three-year period from 2013.

For both companies he submitted fake returns based on card sales only, while failing to declare cash payments. In total, he stole £181,189, made up of £136,236 of unpaid VAT and £44,953 in corporation tax.

Hammond was never appointed as director of either company, but correspondence to his accountant showed he was involved in running the restaurant. Regular emails included company bank statements where he highlighted purchases and sales.

Hammond admitted the fraud at a hearing at Leicester Crown Court in August this year. He was sentenced to 20 months in prison suspended for two years, and ordered to do 180 hours unpaid work.

Confiscation proceedings to recover the stolen money have begun.

Report by Amy Austin

Amy Austin | Reporter, Accountancy Daily [2016-2019]

Amy Austin was reporter, Accountancy Daily and Accountancy magazine, published by ...

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