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 at Newport Crown Court this week.
Kenneth Oatley, 60, of Postern Road, Newport was registered to use HMRC’s Construction Industry Scheme (CIS). Under CIS, registered contractors deduct 20% 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.
The Newport builder pleaded guilty at Newport Crown Court back in August and was yesterday (Wednesday) sentenced and 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.
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.
