Derek Hole, 83, from Clevedon, was the sole director of Briar Building Ltd. He claimed the company was constructing new build residential properties, which are generally zero-rated for VAT purposes, and submitted VAT returns, claiming refunds for the purchase of building supplies totalling £644,579.14 between January 2012 and September 2017.

Investigations discovered the purchases were fictitious and the claims were made up to illegally receive VAT repayments.

Hole was arrested in March 2018. Following a trial at Bristol Crown Court he was sentenced to two years and ten months in prison, having pleaded guilty at an earlier hearing to being knowingly concerned in the fraudulent evasion of VAT contrary to s72 of The Value Added Tax Act 1994.

Richard Wilkinson, assistant director, fraud investigation service, HMRC, said: ‘Hole lied so he could claim money he was not entitled to. He manipulated a system that exists for the benefit of legitimate companies, individuals and charities with the sole purpose of cynically lining his own pockets.

‘He knew he was breaking the law, yet chose to overlook it for the opportunity of making what he wrongly assumed would be easy money, at the expense of the taxpayer.’

Report by Pat Sweet