Friday 15th May, 2015

The owner of a South Wales company, who fabricated invoices so he could fraudulently claim VAT refunds totalling £163,000, has been jailed for 13 months, after an investigation by HM Revenue and Customs (HMRC).

Stephen Wright, 50, from Llanblethian, Cowbridge, was the owner of SJ Wright in August 2012, when he submitted invoices to support a VAT repayment claim for £57,000. The invoices, from Lex Facilities and Construction Management Ltd, billed SJ Wright for office refurbishment allegedly carried out in 2008. Investigations by HMRC showed that the work had actually been done in 2006 - outside the four-year time limit allowed for VAT repayment claims. It was also discovered that Wright was sole director of Lex Facilities and Construction Management Ltd and the company hadn’t carried out the refurbishment work for SJ Wright.

During the investigation it was found that Wright had also submitted false invoices in 2006, in order to reclaim £106,000 VAT, which again he wasn’t entitled to.

Colin Spinks, Assistant Director, Criminal Investigation, HMRC, said:

“Wright falsified invoices to reclaim VAT he wasn’t entitled to, but HMRC’s checks ensured that he couldn’t. We are investing more time and effort than ever into tracking down those who attempt to rip off public services while they line their own pockets by claiming more than they are legally entitled to.”

Wright pleaded guilty to VAT fraud and has 28 days to repay the proceeds of his crime with interest and costs.He was sentenced to 13 months imprisonment at Merthyr Crown Court yesterday (13 May 2015).