Director jailed for six years over £7m VAT evasion

Two brothers have received lengthy prison sentences after stealing more than £7m in VAT and falsifying invoices over an eight-year period

Mark Stead, and his brother, David Stead, faced sentencing at Hull Crown Court for their involvement in stealing nearly £7m, which they gained by failing to pay VAT between 2010 and 2018.

The pair, who were associated with construction installation companies Pink Innovations and Pink Services Ltd, also acquired £250,000 by deducting National Insurance contributions (NICs) from his employees’ pay, which he failed to pass on to HMRC.

Stead then used the fraudulent funds to live a life of luxury, spending the money on boats, caravans, holiday homes and private education for his children.

To fulfil the scam, the director also introduced four people into his scheme – including his wife and brother, David Stead, who helped manage the company from 2015 to 2017.

During this time, the others provided or passed on false documents, including bank statements, invoices and employee records.

On top of this, his assistant, Denise Milestone, lied to HMRC about where Stead was so he could avoid contact with HMRC when they made site visits.

Only Mark Stead and his wife, Jennifer Everett, gained financially to any significant degree from the crimes – the others involved made only nominal financial gains, if any at all.

Simon Gledhill, prosecuting, said: ‘When a review was to be carried out by HMRC in June 2017, that prompted a flurry of activity by those at the company in the preparation of false documents to justify the false VAT claims.

‘The couple benefitted from the fraud. It funded expensive boats and cars, along with school fees, investment in a motor racing team and property abroad. They could buy boats and caravans using the PAYE receipts they never paid to achieve the lavish lifestyle they wanted.’

Representing Stead, Danielle Graham admitted that her client had ‘accepted he was going to jail’ for some length of time and that he was the one in charge of the fraud.

Appearing at Hull Crown Court, the solicitor argued that her client was ‘remorseful’ and of ‘previous good character’, and that he had never been in the criminal justice system before.

In remanding Mark and David Stead into custody, Judge Bury warned the brothers of the severity of their crimes, and that both were likely to head to prison.

Mark Stead pleaded guilty to all seven counts of fraud and was handed a sentence of six years behind bars.

His brother, David, was jailed for two and a half years, while his wife, was given an 18-month sentence.

For answers to your questions on how imprisonment affect employment, visit BrAInbox today where you can find answers to questions like Can I fire an employee because they've been put in prison?

Read more from the latest BrAInbox Business News update:

Brewery shuts due to inflation

Share incentive plans up for review

Airline company loses vat appeal

School fee scheme breaks tax rules