Nursery owner jailed for tax fraud
Monday, June 22, 2015
A Hampshire nursery owner has been jailed for five-and- a half years after stealing £950,000 from his employees.
Michael Scott, co-owner of Pixies Day Nursery, which operates two settings in Woolston and Locks Heath, was found guilty of income tax and National Insurance fraud by a jury at Southampton Crown Court on 17 June.
He was sentenced to five-and- a half years in prison and banned from being a director of a company for ten years.
His ex-wife Marina Scott, who was also charged, was found not guilty.
The trial followed an investigation by HM Revenue and Customs (HMRC) after concerns were raised by former employees about gaps in their income tax and National Insurance records.
The investigation revealed Mr Scott had deducted Pay as You Earn (PAYE) Income Tax and National Insurance Contributions (NICs) from the salaries of more than 180 of his workers, but then failed to declare and pay the money to HMRC over a period of four years (2007-2011). He also failed to declare and pay employer National Insurance.
John Cooper, HMRC’s assistant director of Criminal Investigation, said, ‘Michael Scott brazenly robbed his employees and lined his own pockets at the expense of the wider taxpaying public. Tax was deducted and shown on payslips but the money was not handed over to HMRC, leading to gaps in employees’ tax records.
‘HMRC is working with the victims of this fraud to correct their tax and contributions records.’
The nurseries continue to operate as normal.
