The sentencing, handed down at the Old Bailey yesterday, follows an HMRC investigation which began in 2012 and discovered VAT fraud in which Shahzad Rubani had recruited friends and associates to help set up a chain of VAT-registered companies purely to commit fraud.

He had amended company accounts and submitted false VAT returns for his ‘clients’, claiming repayments that weren’t due, and while committing the fraud claimed Jobseekers Allowance to which he wasn’t entitled.

Rubani, a qualified accountant and ACCA member, was considered the principal organiser of the fraud. He pleaded guilty and was sentenced to four years and three months in prison and disqualified from being a director for seven years.

Peter Millroy, assistant director, Criminal Investigation at HMRC, said that Rubani had devised a scam which he thought was foolproof to deceive HMRC and steal money from the taxpayer.

‘He used his professional status as a smokescreen and thought his criminal actions would go undetected. He was wrong and is now paying the price with a prison sentence and his reputation and professional career in tatters,’ said Millroy.

Four others, Kasser Hussain from Middlesex, Islam Akram from London and Imran Khan and Jonathan Leslie William Burns, were also convicted for their part in the conspiracy.

Hussain, who set up a company called Braywell Consultancy Ltd, allegedly trading in software consultancy and web development but who worked with Rubaini to allow false VAT returns to be submitted, pleaded guilty and was sentenced to two years and three months in prison and disqualified from being a director for four years.

Khan set up a company called Investment UK Ltd, allegedly trading in commodities but worked with Rubani to allow false VAT returns to be submitted. He was found guilty and sentenced to two years in prison and disqualified from being a director for four years.

Burns was found guilty and sentenced to three years in prison and disqualified from being a director for five years after he set up a company called Whiteflight Ltd, allegedly buying and selling computers and components. He worked with Rubani to allow false VAT returns to be submitted.

Akram pleaded guilty and his sentencing has been adjourned for six weeks. He had set up a company called UK’s Best Ltd, trading in the sale of household goods. Although the company was originally legitimate, Akram worked with Rubani to allow false VAT returns to be submitted when his business started to fail.

Judge Mettyear said: ‘It was the skill and determination of HMRC that brought these defendants to justice.’