A bankrupt Scottish printer, who faked invoices to claim almost £486,000 in VAT refunds, has pleaded guilty to VAT fraud and money laundering after an investigation by HMRC.

Joseph Miller from Rothesay was arrested after HMRC investigators discovered he had provided his accountant and HMRC with false invoices and receipts to inflate his VAT repayments.

Paisley Sheriff Court heard that over a seven year period Miller made numerous claims for VAT refunds and, although he was declared bankrupt in 2004, continued to reclaim VAT using false documents.

Between 2000 and 2007 Miller fraudulently claimed £485,954 and attempted to claim a further £64,453.10. He also pleaded guilty to laundering £85,876.

Anne-Marie Gordon, HMRC assistant director, criminal investigation, said: 'This was an organised fraud, making huge profits for Miller. He knew that by stealing VAT he was breaking the law, but took the opportunity of making what he wrongly assumed would be easy money, at the expense of the UK taxpayer.'

Miller has been remanded in custody until sentencing on 11 November 2013.