The manager of a Cambridgeshire recycling company has been jailed for four years after fraudulently claimed more than £1.1m in VAT repayments.
An investigation by HM Revenue and Customs (HMRC) found NKB Recycling manager Brian Brader had produced fake invoices and fraudulent business records instead of evidence to support VAT repayments.
It also found Brader (pictured), who set the firm up in September 2010, had drawn an £82,000 salary without paying any Income Tax or National Insurance.
Brader was arrested at his home in July 2013 and initially said all the claims he had submitted were correct, but later admitted producing more than £350,000 worth of fake invoices for transactions that had never taken place including cardboard and plastics exports to China and India.
HMRC discovered that Brader took £94,500 from the business in February 2013, for a buy-to-let property. This property was later sold for £131,000 and HMRC has a restraint order on these funds.
He was charged with Cheating the Public Revenue in March 2015 and pleaded guilty in January 2016 at Ipswich Crown Court.
Brader, 35 from Chatteris, was sentenced to four years in prison at the same court on 4 March and disqualified from acting as a company director for eight years.
Paul Barton, HMRC fraud investigation service assistant director, said: “Brader had a total disregard for the rules; he faked invoices to claim over £1m of taxpayers’ money which should have gone into public services.
“He also brazenly paid himself a huge salary without paying a penny in tax. This is simply not acceptable when other, honest businesses pay what they owe.
“Tax fraud is a serious crime and HMRC will continue to pursue those individuals or businesses who attack the tax system.”
In total, Brader fraudulently claimed £1,142,451.91 in VAT. He drew a £82,572.72 salary on which £24,437.10 Income Tax and National Insurance are due.