We encourage anyone with information about VAT fraud or money laundering to report it online or to call the Fraud Hotline on 0800 788 887.” “Tax fraud is not a victimless crime, it robs our vital public services of much-needed funds.
“The majority of businesses and individuals pay the tax that is due, but we will relentlessly pursue the determined minority who refuse to play by the rules. Nick Stone, Assistant Director, Fraud Investigation Service, HMRC, said: “Lee Hickinbottom and his former partner used stolen taxpayers’ cash to fund a lavish lifestyle that included hot tubs, holidays and home improvements they could not legitimately afford. We will also be pursuing confiscation proceedings against the defendants, to strip them of any money from their criminal activity.” “The CPS will be inviting the court to put in place measures to prevent Lee Hickinbottom, a career criminal, from committing similar offences in the future. He pleaded guilty to this offence of fraud before the trial.Īnamarie Coomansingh of the CPS said: “Taxpayers’ money, which should have been spent on vital public services such as the NHS, education and social care was instead used to fund the unearned and extravagant lifestyle these defendants enjoyed. He received £28,520.26 which he was not entitled to receive.ĭavid Hickinbottom had two companies, neither were registered for VAT but he charged his customers VAT totalling £8,322 which he was not entitled to do. Although Knott had no formal links to Serenity Community Transport, she benefitted from money being transferred to her from these frauds and the lifestyle Lee Hickinbottom provided for her.īefore the trial, Lee Hickinbottom admitted to cheating the revenue with regards to false claims for Job Seekers’ Allowance and Employment Support Allowance by failing to declare savings and income during the time the companies were operating. Taxpayers’ money was spent on Lee Hickinbottom and Knott’s lifestyles: cars, jewellery, £1,500 on Lego, home improvements, investments in other companies, loans, and gifts to family. Once HMRC had intervened and stopped VAT repayment claims being paid to Serenity Community Transport Ltd, Lee Hickinbottom continued to make false VAT repayment claims of over £50,000 to keep the new businesses afloat. Rebranded as “Cornyx Corner”, the businesses quickly failed in the hands of Lee Hickinbottom. Money from the fraud was used to buy a café and newsagents in Solihull. Serenity Community Transport Ltd claimed £1,290,326.93 in VAT (relating to over £7m in fake invoicing). The legitimate companies with whom he purported to have traded were clear they had not traded with Lee Hickinbottom in any capacity. There is no evidence that this company ever did any legitimate trade, but Lee Hickinbottom used false invoices to support his fraudulent VAT returns. Once Serenity Travel had gone into liquidation, Lee Hickinbottom VAT registered a company called Serenity Community Transport Ltd, with him named as a director. Tabatha was the director of this company but was assisted by Lee Hickinbottom. Businesses who have charged customers prices less VAT than they have paid on purchases can then put claims to the HMRC to repay the difference.īetween September 2013 and November 2014, Serenity Travel Ltd over claimed £43,177 in VAT repayments.
The criminal enterprise involved the defendants using a company’s VAT registration to make fraudulent VAT repayment claims towards the end of its life and after it had gone into liquidation. High priced cars bought by Lee Hickinbottom David Hickinbottom, 36, pleaded guilty of one count of cheating the public revenue.
Tabatha Knott, 34, was found guilty of one count of cheating the public revenue (HMRC) and one count of money-laundering. Lee Hickinbottom, 49, was found guilty of multiple counts of cheating the public revenue (HMRC and DWP). Three people were convicted today of defrauding the taxpayer for over £1 million in a criminal scheme that exploited government systems designed to support businesses.