This in from the HMRC, in their own words, Ed
An Isle of Wight builder, who deducted tax from a subcontractor’s earnings but stole some of the money rather than paying it to HM Revenue and Customs (HMRC), has been sentenced.
Spend subcontractor’s deductions
Investigations revealed that Kenneth Oatley, 60, of Newport, was registered to use HMRC’s Construction Industry Scheme (CIS). Under CIS, registered contractors deduct 20 per cent from self-employed subcontractors and pass the money to HMRC monthly or quarterly for Income Tax and National Insurance.
Oatley previously used the scheme correctly, but admitted that between 2010 and 2013 he spent £13,405 of the money he deducted from a subcontractor.
Tax fraud
John Cooper, Assistant Director, Fraud Investigation Service, HMRC, said:
“Not only did Oatley steal from a subcontractor, he lined his own pockets with money that should have been handed over to HMRC to fund public services. Those who are tempted to commit tax fraud should know that we are closing in on those who try to cheat the system.
“Anyone with information about suspected tax fraud can contact the Customs Hotline on 0800 59 5000.”
Two year community order
Oatley pleaded guilty at Newport Crown Court in August 2015. At the same court yesterday (21 October) Oatley was ordered to pay back £13,405 to HMRC, along with costs of £1,680.
He will also serve a two-year community order with 200 hours of unpaid work.
Image: Images of Money under CC BY 2.0
