Construction tax fraudsters jailed for ten years

Grant Prior 10 years ago
Share

Two Essex businessmen who evaded £2.5m in Corporation Tax and VAT in a fraud linked to the supply of labour to the rail construction industry have been jailed for 10 years.

For seven years Michael Woodward, from Grays, Essex, failed to pay business taxes for the companies he ran.

He lied about his company profits and created false invoices from bogus consultancy firms, controlled by his best friend and co-defendant Richard Ponsford from Ongar, Essex.

Paul Barton, Assistant Director, Criminal Investigation, HMRC, said: “Woodward and Ponsford thought they had created the perfect crime, stealing millions from law-abiding taxpayers.

“They thought their criminal actions would go undetected but they were wrong. They have lost their freedom which has been traded instead for time behind bars.

“We will now seek confiscation orders to recoup the money they stole for the country’s public services.”

The men under-declared their profits to reduce the Corporation Tax due and used fake consultancy invoices to reduce their VAT payments by £2.5m.

The money was transferred to four consultancy firms controlled exclusively by Ponsford.

Between 2004 and 2011 he made 387 cash withdrawals which the men used to supplement the wages of employees and family members.

The fraud was stopped in its tracks when they were arrested in March 2011 and HMRC officers searched residential and business premises in Essex.

The only business records found for the seemingly successful companies controlled by Ponsford were handwritten notes indicating the cash he withdrew was returned to Woodward.

In a three-week trial at Southwark Crown Court the defendants were found guilty of Cheating the Public Revenue.

 

Latest news

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
2 hours ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
2 hours ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
2 hours ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
3 hours ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
21 hours ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
2 hours ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
1 day ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
1 day ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
1 day ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
1 day ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
2 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
1 day ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
2 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
2 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
2 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
2 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
2 days ago

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
5 days ago

Weston targets Build to Rent with new division

Weston Partnerships signs first deals with asset managers and councils
2 days ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
5 days ago

£140m cash injection to speed-up flood defence schemes

Funding part of £2.65bn investment over the next two years
2 days ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
5 days ago

Berkeley’s £600m Borough Triangle project approved

Controversial scheme features two towers of 38 and 44-storeys
6 days ago

London Mayor calls in blocked 600-bed student scheme

Refused 20-storey London PBSA block may still be built
5 days ago

HG to build 500-bed London Stratford student scheme

Work will start later this year subject to gateway 2 safety approval
6 days ago

Arrest after pedestrian death on construction site

Tragedy during site preparation works for new Wigan car park
5 days ago

British Steel threatens closure of Scunthorpe blast furnaces

Chinese owners say sectional steel and rail supplies will be maintained
6 days ago

Planning green light for Sheffield warehouse site

Existing factories to be demolished in new scheme for Rula Developments
5 days ago

New rail property company to unlock land for 40,000 homes

First four sites released in Newcastle, Cambridge, Manchester, and Nottingham
6 days ago

Drainage specialist Subscan files administration notice

Specialist employing 131 people files court notice
6 days ago

Contractor services