The director of three Dorset building companies who made fake VAT repayment claims of more than £1million has been jailed for 18months.

An investigation by HM Revenue & Customs (HMRC) discovered that Stuart Cleveland Price, 48, from Verwood in Dorset, had faked invoices to reclaim VAT he wasn’t entitled to.

Based on his repayment claims, HMRC investigators were expecting to find invoices for more than £9million. Only a fraction of this appeared in his trading records.

John Cooper, Assistant Director of Criminal Investigation at HMRC, says: “Price committed fraud over a number of years, deceiving not only HMRC but also the thousands of businesses which operate honestly and within the law.

“When he was asked for documentation to support the repayment claims, he produced bank statements that had been doctored with amounts that did not add up. He also provided invoices that had genuine headings but where the details were false.

“HMRC thoroughly investigates suspected tax fraud and clamps down on those who cheat the system. Anyone can report a fraud by calling the 24-hour hotline on 0800 59 5000.”

The fraud was stopped after HMRC officers raided Price’s home and business address in June 2011 and removed his business records. They found that Price had traded for a number of years before he started to submit fraudulent VAT repayment claims that his companies were not entitled to.

Stuart Cleveland Price was charged with three VAT fraud offences on 27 September 2012. He pleaded guilty at an earlier hearing and was sentenced at Bournemouth Crown Court on 22 February this year to 18 months in prison.

HMRC says it will seek to recover the mony stolen in a confiscation hearing.