Mon, 11 Jan 2016 

Mahmud Hussain and Iftekhar Rehman, both directors of Whittlesey, Peterborough-based One Stop Recruitment, have been sentenced after stealing more than £245k due to HM Revenue & Customs.

According to an HMRC statement, the men pocketed employees’ tax and National Insurance Contributions (NICs) and failed to pay VAT bills. 

In the statement, HMRC Fraud Investigation Service assistant director Paul Barton said the money was used to fund the business, giving “an unfair advantage over their competitors and other honest businesses that pay what is due”.

Hussain was jailed on Friday at the Peterborough Crown Court, sitting at Huntingdon Magistrates Court, for 15 months. He had pleaded guilty to three counts of tax evasion in November 2015.

Rehman was given 41 weeks in prison, suspended for 10 months, as well as 300 hours of unpaid work in the same court. He had pleaded guilty to three counts of tax evasion on 7 December.

Hussain was disqualified from being a company director for six years. Rehman was disqualified for two years. 

HMRC says the company provided seasonal factory workers and labourers.

They were caught after HMRC officers visited the business to inspect records. They found payroll details for 150 employees who wrongly thought their tax and NICs, totalling £127k, had been paid to HMRC. Further investigations revealed £188.3k was owed in unpaid VAT.

Confiscation is being sought to recover the money. 

One Stop Recruitment traded between 1 August 2011 and 19 July 2012, when it was placed into liquidation. However, Hussain continued to trade until December 2012, HRMC says. 

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