Daniel King set up his underwear company, D-briefed, in October 2013 and informed HMRC investigators he intended to import the underwear from china to re-sell over the internet. However, he was unable to produce any documentation to support his claim that he intended to trade, leading to the conclusion that his business was simply set up to conceal his tax fraud.

King informed investigators that he had attended a VAT seminar before setting up his company to ensure he knew how the tax system worked. He later admitted making up the figures for 10 fraudulent VAT claims, totalling £57,563.35, between December 2013 and March 2016.

On sentencing, Recorder P Griffiths QC said: ‘I am satisfied that you went into this with your eyes wide open and that you knew full well you were acting fraudulently. You have gained financially, dishonestly and deliberately and it would be an affront to the public if you were not immediately deprived of your liberty.’

King pleaded guilty to making a false representation intending to make a gain for himself, namely VAT repayments, contrary to sections 1 and 2 of the Fraud Act 2006 at Swansea Crown Court on 17 August 2017. He was sentenced to two years and three months in prison. He was ordered to pay £670 as well as a victim surcharge of £120.

Colin Spinks, assistant director, Fraud Investigation Service, HMRC, said: ‘King blatantly abused the tax system by setting up a company for the sole purpose of stealing money that should have funded public services. Now he has a criminal record and we are working to recover the money he stole.’