Sunderland window salesman admits dodging Â£30,000 tax
A self-employed window salesman has admitted dodging almost Â£30,000 after lying to the tax man for four years.
Kevin Donoghue provided fraudulent tax returns to tax and customs officials between April 2010 and April 2015, South Tyneside Magistrates Court heard.
The 44-year-old was caught after the double glazing company he did subcontract work for provided the tax authorities with conflicting information about his earnings.
Laura Croft, prosecuting, told the court: “The defendant has been self-employed, working for another company.
“The information he had provided to HMRC has not been in accordance with the tax return information from his employer.
“He was not declaring that income over a period of four years.
“When this came to light in 2015, HMRC wrote to the defendant saying that they planning to launch an investigation into his tax returns.”
The court heard Donoghue’s accountant was contacted, but said he did not instruct him any more and another accountant asked for an extension to submit new tax returns for 2013-14 and 2014-15.
Ms Croft said those returns showed discrepancies with his VAT returns – which exceeded the amount of the tax return.
She said Safestyle UK confirmed that Donoghue was working as a self-employed canvasser.
Ms Croft added: “HMRC compared the income figures provided by Safestyle with the income on the tax returns.
“There was a disparity between the two and income tax of £29,977.27 should have been paid for the four years.”
The court heard Donoghue has a previous conviction for dishonesty, dating back to 2001. Donoghue, of Lunedale Avenue, Sunderland, admitted that he was knowingly concerned in the fraudulent evasion of income tax.
Magistrates heard the case must be dealt with at the crown court as HMRC is seeking to recover the unpaid tax in a Proceeds of Crime Act (POCA) application.
Ian Cassidy, defending, said: “Every single case of this nature that I have dealt with has been dealt with by way of a suspended sentence with much more money involved.
“They have all been committed in similar circumstances.
Donoghue was released on unconditional bail and will appear at Newcastle Crown Court on January 16.