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Tax fraud catches up with accountant

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A self-employed accountant from the Wirral, who failed to pay £38,000 tax for five years, has been given a suspended sentenced following an HMRC investigation

David Ellis, from Spital, registered with HMRC as a self-employed accountant, and ran a firm offering accountancy services including completing self assessment returns, VAT returns, corporation tax returns, company accounts, payroll services and the general computation of tax liabilities for individuals and small/medium sized businesses.

Ellis submitted tax returns for himself between 1985 and April 2009, but then stopped. HMRC’s subsequent investigation revealed Ellis owed £37,646 for his own personal taxes over five years. He also failed to pay £10,320 National Insurance and income tax for his employees for four years.

Ellis was sentenced to 18 months in prison, suspended for two years, and handed a six-month curfew after pleading guilty to seven counts of fraud.

Paul Maybury, assistant director, fraud investigation service, HMRC, said: ‘As an accountant, Ellis was in a position of trust and knew he was breaking the law. He dealt with his clients’ tax affairs while blatantly ignoring his own responsibilities.

‘There is no excuse if you are a financial professional – HMRC will not tolerate fraud by accountants.’

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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