A self-employed scaffolder from Sunderland, who admitted he had tried to hide from the taxman to avoid paying £56,000 in VAT and income tax, has been jailed for nine months.
When scaffolder Joseph Dellett, aged 50 from The Strand, Sunderland was declared bankrupt in 2007 with debts of over £70,000 he simply continued to operate as a sub-contractor for other companies. But he didn’t declare or pay tax on his earnings. Not only that but he continued to charge his customers VAT – which he kept for himself. For four years he evaded paying more than £38,000 in VAT and £18,000 in income tax and national insurance contributions.
Dellett failed to advise HMRC that he was again self-employed following his bankruptcy in 2007 and did not complete any Income Tax Self Assessments. But HMRC Tax Inspectors discovered he had received payments for work with a number of contractors in the Sunderland area. They found he had been working as a sub-contractor, charging his customers VAT, yet not submitting VAT returns. The tax investigators were able to prove that Dellett was not only working in the UK but that he was receiving large payments on which was not paying Income Tax, National Insurance or VAT.
Dellett was arrested in August 2012 and pleaded guilty to the fraudulent evasion of income tax and VAT. He was sentenced today to 18 months at Newcastle Crown Court.
Lynam Tax Investigation Experts have extensive experience in managing serious tax evasion investigations. If you are concerned about a tax enquiry we can advise you on the best course of action. We can help you manage any disclosures required. If you are facing criminal charges we can help you get legal representation, in order to obtain the best outcome for you.
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