A recruiter who ran two agencies in Wakefield, UK pocketed more than £470,000 in the VAT he charged his customers rather than pass it on to HM Revenue and Customs (HMRC).

Shaun Clark, who was disqualified from running a business for five years in 2009, used money from the fraud to buy two houses in Tingley and a luxury holiday lodge in Cleethorpes. He also spent approximately £30,000 leasing luxury cars.

Clark ran recruitment firms Maxim Healthcare Ltd and Iron Bridge (Yorkshire) Ltd from the same address on Bond Street, Wakefield, and pocketed £470,867 which should have been paid to HMRC between May 2014 and July 2016.

Sandra Smith, Assistant Director, Fraud Investigation Service, HMRC, commented, “Clark deliberately stole money which should be used to fund our public services, to fund a lifestyle beyond his means. He pocketed enough money to pay the salaries for 21 newly qualified nurses for a year.”

HMRC began investigating Clark’s tax affairs when he applied to register another company for VAT at the same address. The investigators found Iron Bridge (Yorkshire) Ltd charged customers VAT but never submitted a VAT return, and occasionally used company details of Maxim Healthcare Ltd on invoices.

Officers also found Maxim Healthcare Ltd continued to charge customers VAT despite not submitting a VAT return since April 2014.

Clark admitted VAT fraud at Leeds Crown Court on 11 May 2018. He also admitted running a business while disqualified on 29 August 2018.

He was subsequently sentenced to 27 months in prison and banned from being a company director for eight years at the same court on 14 September 2018. Proceedings are now underway to recover the stolen money.