Prison sentence for electrical boss as spark goes out on VAT scam
A PRISON sentence has been handed down to the director of a Scunthorpe electrical business after the court found he had faked invoices to pilfer nearly £150,000.
Richard Hotchin, 39, the sole director of Qube Specialist Maintenance Systems was investigated by HMRC when it came to light that he had been inflating the cost of purchases and drew up false invoices to syphon £147,000 out of the business.
Gainsborough-based Hotchin fabricated his VAT returns between April 2012 and March 2014 according to HMRC.
He pleaded guilty to cheating the public revenue at Lincoln Crown Court on 22 June 2016, and was yesterday sentenced to 21 months in prison.
Confiscation proceedings are underway to recoup the proceeds of his crime. Administrators from Leonard Curtis were appointed to the business on 19 November 2015.
It was sold to Stuart Hotchin, the brother of Richard Hotchin. Secured creditor Lloyds Bank was repaid £99,000 with the sale of its Brigg Road premises.
Richard Young, assistant director, Fraud Investigation Service, HMRC, said: “Hotchin manipulated the accounts of his business and drew up fraudulent invoices to steal taxpayers’ money to which he was not entitled. This is money that should have been funding vital public services, and his scam created an uneven playing field for his honest competitors.
“HMRC takes tax fraud extremely seriously, and will take action where we find it to ensure no one is beyond our reach. I urge anyone with information about individuals or businesses involved in tax fraud to call our 24-hour hotline on 0800 59 5000.”
