THE OWNER of a recycling company has been jailed for four years after being found guilty of claiming over a million pounds in fake VAT repayments.
Brian Brader, 35, from Chatteris, Cambridgeshire, fraudulently claimed £1,142,451.91 in VAT since setting up NKB Recycling in September 2010.
He claimed the company exported waste from the UK to China and India, but following an investigation from the taxman, found fake invoices and fraudulent business records, proving that the firm never exported any waste.
HMRC also discovered that Brader paid himself an £82,000 salary without paying any income tax or national insurance, as well as drawing out £94,500 from the company to rent a property for himself.
Initially claiming that all his claims were correct upon arrest in July 2013, Brader admitted to conducting £350,000 worth of transactions that never took place.
Brader pleaded guilty at Ipswich Crown Court in January, and last week was sentenced to four years in prison for cheating the public revenue, an offence he was charged for in March last year. He has also been disqualified from being a company director for eight years.
Paul Barton, assistant director at HMRC’s Fraud Investigation Service, said Brader had a “total disregard” for tax 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,” continued Barton.
At HMRC, Dmitri Surendran was responsible for leading the London team of the offshore, corporate and wealthy unit of the fraud investigation service
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls