Accountant who failed to pay tax gets suspended jail term

An accountant from the Wirral, who didn’t pay tax for five years, has been handed an 18-month prison sentence, suspended for two years and a six-month curfew.

David Eric Ellis, 68, of Parnell Road, Spital, registered with HM Revenue and Customs (HMRC) as a self-employed accountant, trading as Ellis and Co Accountants, and submitted tax returns between 1985 and April 2009, but then stopped.

An HMRC 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.

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. If you know of anyone who is committing tax fraud you can report them by calling our new Fraud Hotline on 0800 788 887.”

Ellis pleaded guilty to seven counts of fraud at a previous court hearing.