Paul Lawrence, from Hornchurch, East London, submitted self-assessment tax returns to HMRC between 2012 and 2015 which included false information about income to fraudulently receive £21,000 in tax repayments. The final bill was £17,000 as he paid back some of the outstanding tax.

He made multiple repayment claims, then used the cash he banked to visit bars and stay in hotels.

Lawrence also received repayments from his own self-assessment account by exaggerating expenses claims and downplaying the amounts of earnings.

At Inner London Crown Court Lawrence admitted nine charges of fraud by false representation and was sentenced to 15 months of jail. This was suspended for two years, but he will have to complete 150 hours of unpaid work and attend a ‘Thinking Skills’ rehabilitation program to prevent him reoffending.

Brett Wilkinson, assistant director, financial investigation service, HMRC, said: ‘Lawrence knew what he was doing was wrong. He was abusing the tax system to fund his lifestyle and dragged his blameless friends into the mire.’

HMRC will now pursue confiscation proceedings against Lawrence.

Report by Pat Sweet