A former company director and his ex-wife, who were jailed earlier this year by a Scottish court for a total of six years and nine months for tax fraud, have been ordered to pay back £154,900
Donna Howard failed to pay over £283,713 of income tax and National Insurance Contributions (NICs) deducted from the unsuspecting employees of her ex-husband, Michael Howard, the director of Motherwell-based MDH Fire and Security Services Ltd.
HMRC investigators discovered that PAYE deductions for 29 employees had not been paid and that Donna Howard gave the fraud a veneer of legitimacy by creating false paperwork.
The investigation also revealed the Howards had charged customers more than £530,000 in VAT using fictitious and de-registered VAT numbers, but kept the money. The fraud was used to fund their lifestyle and before they were caught, the couple shared a £400,000 house in Motherwell and enjoyed luxurious trips abroad.
The Howards have now been ordered to pay two confiscation orders worth £154,900 at Hamilton Sheriff Court. Donna Howard was ordered to pay £127,000 within six months and her ex-husband £27,900 within the same timeframe. HMRC can apply for further confiscation and pursue the outstanding benefit of the fraud in the future.
Cheryl Burr, assistant director, fraud investigation service, HMRC, said: ‘Even following a conviction our work doesn’t stop. We will always seek to recover the profits criminals have made from their crimes, securing these funds for the public purse.’
The couple are both serving three year jail sentences for the VAT fraud and Donna Howard was also given a nine month concurrent sentence for failure to pay over income tax and NICs.
Report by Pat Sweet
