Rotherham man jailed for tax fraud

Iftekhar Rehman, 28, who was given 41 weeks in prison, suspended for 18 months, as well 300 hours of unpaid work for his part in a tax scam.
Iftekhar Rehman, 28, who was given 41 weeks in prison, suspended for 18 months, as well 300 hours of unpaid work for his part in a tax scam.

A Rotherham company director has been jailed for 15 months for his part in stealing more than £245,000 in a tax scam.

Mahmud Hussian, 44, director of One Stop Recruitment (Nationwide) Limited, pocketed employees’ tax and National Insurance Contributions (NICs) and failed to pay their VAT bills, along Iftekhar Rehman, 28, also a company director.

Mahmud Hussain, 44, jailed for 15 months for his part in a tax scam.

Mahmud Hussain, 44, jailed for 15 months for his part in a tax scam.

The duo used the Pay As You Earn (PAYE) system to deduct Income Tax and NICs from employees’ wages, but instead of paying the money to HM Revenue and Customs (HMRC), they pocketed the cash. An HMRC investigation into their tax affairs also revealed they hadn’t paid employer NICs or VAT, using the money to buoy up their business.

Rehman, of Peterborough was given 41 weeks in prison, suspended for 18 months, as well 300 hours of unpaid work.

Paul Barton, Assistant Director, Fraud Investigation Service, HMRC, said: “Hussain and Rehman used their employees Tax and National Insurance to fund the business at their expense.

“In addition Hussain and Rehman failed to pay the VAT that was owed, giving them an unfair advantage over their competitors and other honest businesses that pay what is due.

“This fraudulent behaviour is never acceptable and HMRC will work to bring to justice anyone involved in this type of criminality. If you have information about suspected fraud please contact our 24 hour Hotline on 0800 59 5000.”

Hussain, of Masbrough Street, and Rehman provided factory workers and labourers for seasonal work. The pair, who based their business in Whittlesey in Peterborough, were caught after HMRC officers visited their premises to inspect business records.

The officers found payroll details for 150 employees, who wrongly thought that their tax and NICs totalling £127,033 had been paid to HMRC. Further investigations also found that £118,311 was owed in unpaid VAT.