Between 2003 and 2014, Ian Coleman from West Yorkshire pocketed the VAT charged to customers of his vehicle repair business, Top Gear Transmissions Ltd, instead of passing the money to HMRC.

Coleman failed to hand over VAT of £231,444 to HMRC. In addition, he accepted VAT central assessments that he knew were £72,617 lower than his true VAT liability. With interest, Coleman’s total outstanding liability to HMRC is £377,141.

The fraud was uncovered when HMRC found anomalies in Coleman’s paperwork. During a search of his lock-up in Eschaton, in March 2015, investigators discovered the true business records detailing takings dating back to 2003.

After reviewing the accounts, HMRC established that Coleman had also avoided paying more than £15,000 in VAT by under-declaring scrap metal sales.

Coleman denied any wrongdoing, but was unable to offer any explanation for repeatedly failing to submit accurate VAT returns, stating that he was ‘no accountant’.

He pleaded guilty to 12 counts of the fraudulent evasion of VAT at Leeds Crown Court, and was sentenced to 32 months imprisonment.

Martin McDonnell, HMRC spokesperson, said: ‘Coleman thought that he’d found a way to exploit the tax system. He was wrong, and now he’s now paying the price with a jail sentence. This is money that should have been funding vital public services, and Coleman created an uneven playing field for his honest competitors.’

Confiscation action to recover the proceeds of Coleman’s crime is underway.