Lincoln Crown Court heard that Richard Hotchin was the sole director of Qube Specialist Maintenance Solutions Ltd, which hit cash flow issues arising from problems that arose over payments for a major contract. The company went into liquidation in December 2015.

Hotchin was found to have used fake invoices to falsely reclaim VAT on his returns between April 2012 and March 2014, only to be caught out following a VAT inspection. He inflated the value of his purchases and drew up false invoices for equipment he had never bought.

HMRC’s investigation found Hotchin had submitted false returns for three different VAT quarters and paid the amounts due according to the forms. He used the VAT from two false invoices to offset £101,800 against the amount of VAT he should have paid. The investigation revealed that neither of the suppliers involved had ever traded with Qube and that the invoices used were fake.

Richard Young, assistant director, fraud investigation service, HMRC, said: ‘Hotchin manipulated the accounts of his business and drew up fraudulent invoices to steal taxpayers’ money to which he was not entitled. This is money that should have been funding vital public services, and his scam created an uneven playing field for his honest competitors.’

Hotchin pleaded guilty to cheating the public revenue at Lincoln Crown Court and was sentenced to 21 months in prison. Confiscation proceedings are underway to recoup the proceeds of his crime.