TWO former Alton landlords who stole more than £60,000 of VAT by faking invoices for non-existent refurbishments to pubs they ran have been handed suspended prison sentences.

Mark Hogg, 51, and Nicolina Collings, 59, together ran four premises in Hampshire, Surrey and Berkshire, including Alton pub The Barley Mow.

Over a period of two-and-a-half years, between July 2010 and February 2013, they made 16 VAT repayment claims, telling HM Revenue and Customs (HMRC) that the refunds were due mainly for pub refurbishment work.

But when revenue officers requested paperwork to validate their claims the business partners handed over fake purchase invoices. In total, HMRC investigators discovered 75 fake invoices – 55 from Hogg and 20 from Collings.

In January both pleaded not guilty to the fraud, but Hogg changed his plea to guilty in June and Collings in July. They were sentenced at Guildford Crown Court last Friday.

Mr Hogg was sentenced to two years imprisonment, suspended for two years, and he must also complete 275 hours of unpaid work. Mrs Collings was sentenced to 12 months imprisonment, also suspended for two years, and must complete 250 hours of unpaid work.

The fraud totalled £60,556, with £48,076 falsely claimed by Hogg and £12,480 claimed by Collings.

HMRC is now seeking to recover the criminal proceeds.

John Cooper, assistant director of the fraud investigation service within HMRC, said: “Hogg and Collings worked together to commit VAT fraud and steal taxpayers’ money. In a vain attempt to get themselves off the hook they produced false invoices but were naive to think they could get away with it.”

Mr Cooper went on to urge people to be vigilant with this type of crime, with convictions often relying on tip-offs from the public.

“Anyone with information about VAT fraud should contact the customs hotline on 0800 59 5000,” he added.

The pair ran four pubs over the period of the fraud – The Barley Mow in Alton; The Royal Swan in Blackwater, Hampshire; The Square Bar in Camberley, Surrey; and The Rising Sun in Reading, Berkshire.

HMRC insisted that the current owners and landlords of those premises still in operation, as well as any staff employed by the pair, were not subject to their investigation.

The Barley Mow, a Grade II Listed building, is no longer a pub and the site is being transformed into housing, following its sale and closure back in 2013.

East Hampshire District Council planners granted permission in October 2013 to applicant Burton Property Ventures to convert the former Normandy Street pub into a dwelling, together with the erection of a further five new houses which were completed last year.

The development was made possible thanks to the demolition of a single storey-extension and space in the parking and garden area to the rear.

In 2013 the historic pub, which was built in the 17th century, was owned by Enterprise Inns and was sold subject to the subsequently granted planning permission.

At the time, Collings claimed the pub was unable to offer food because Enterprise Inns didn’t want to invest in the kitchen.

Then, according to consultants Curtin & Co, the pub was marketed for some time but attracted no interest from the licensing trade as a viable business.

In addition, it was felt that The Barley Mow’s “poor local rating” and declining trade would deter buyer interest as it would take significant investment of time and resources to regain local support.

While the plans to redevelop the land were received warmly by some residents, the loss of another pub was fiercely criticised by Campaign for Real Ale members.

Some critics of the plans felt a culture of “deliberate non-investment”, to ultimately facilitate lucrative redevelopment, sealed the pub’s fate.

Collings and Hogg were initially interviewed under caution by HMRC officers in August 2013.

After this they appeared at Guildford Magistrates’ Court on October 2, 2014, charged with conspiracy to evade VAT, contrary to Section 1 of the Criminal Law Act; cheating the Public Revenue, contrary to Common Law; fraud by false representation, contrary to Section 2 of the Fraud Act 2006; fraudulent evasion of VAT, contrary to Section 72 of the VAT Act 1994; and Money Laundering, contrary to the Proceeds of Crime Act 2002.