Leonard Gjini, 33, from Purley, Greater London, set up Croydon-based Leo’s Construction Services Ltd in April 2010, but failed to pass HMRC any of the tax he deducted through PAYE from employees’ salaries, or from contractors’ wages under the Construction Industry Scheme.

He also pocketed the VAT he charged clients.

Alan Tully, Assistant Director, Fraud Investigation Service, HMRC, said: “Gjini ran a relatively successful business, but by the time he finally admitted the fraud, he had built up a huge debt.

“He has defrauded HMRC and abused the trust of his clients and his employees.

“Failing to pay taxes will not be tolerated and it’s unfair to other legitimate businesses who pay their taxes on time. We are determined to stamp out tax fraud and will not hesitate to work with partners like the Insolvency Service to take action against cheats.

“Our next step is to reclaim the profits Gjini made committing this crime.”

Gjini claimed he used the money to fund his gambling and drinking habits, but in reality it was mostly used to fund household expenses and mortgage payments.

The joint-investigation revealed that in addition to the tax fraud, Gjini had not kept proper records for the two years Leo’s Construction Services Ltd was trading.

In July 2012 the company went into a contrived liquidation, as an attempt to evade paying the tax due.

Gjini pleaded guilty to VAT evasion and cheating the public revenue on 26 January 2016, and was jailed for two years at Croydon Crown Court.

Confiscation proceedings under the Proceeds of Crime Act are being taken.