Stephen Douce, who is co-director of ACA Accountancy Services Ltd (ACA), filed self assessment returns which stated that his annual household income was only £4,500 per year for both himself and his wife when in fact it was more than £56,000.He also illegally claimed tax credits for two years.

The HMRC investigation showed that between 2008 and 2013, Douce had failed to pass over to HMRC VAT payments which he had taken from clients. During that period ACA received several payments from different clients. These clients produced evidence for HMRC to show that Douce provided and invoiced taxable services to them totalling £191,609 including VAT of £31,805 which they paid. Douce submitted nil VAT returns for these transactions to HMRC and pocketed the VAT.

Douce was also found to have evaded income tax and National Insurance contributions of £18,203 for himself and £1,591.21 for his wife and falsely claimed £14,111.11 in tax credits.

After pleading guilty to seven offences at a previous court hearing in 2014, Douce has now been given a 16-month prison sentence and confiscation proceedings to recover the stolen money have begun..

Stuart Taylor, assistant director, criminal investigation, HMRC, said: ‘As an accountant Douce was in a position of trust and well aware that he was breaking the law. He chose to do this for the opportunity of making what he wrongly assumed would be easy money, at the expense of UK taxpayers. He now has to pay the price for his criminal activities.’