A GREENGROCER continued to seek VAT refunds for several years after the business ceased to trade, a court heard.

Kevin Larman was jailed for 20 months after Durham Crown Court was told he dishonestly received £130,000 in VAT returns sought from 19 illegitimate claims.

The court heard he submitted returns appearing to show he had spent thousands of pounds on stock for the business, Salad Days, allowing him to reclaim the VAT he had supposedly paid.

Barry Robson, prosecuting, said the claims were originally legitimate, but for four-and-a-half years after Salad Days closed, Larman continued to seek refunds.

His dishonesty came to light when the VAT repayment task force intended to make an unannounced visit to the premises, in Saltwell Road, Gateshead, in January.

Mr Robson said on arrival, investigators found it was no longer operating, having been replaced by a Cash for Clothes outlet.

Larman was then confronted at his home address, in Birtley, near Chester-le-Street, and he indicated the business had ceased trading in 2011.

He voluntarily attended Durham Police Station and admitted submitting VAT returns long after the business closed.

“This came as a revelation, as it was at Easter that year that the business actually closed, and yet the returns had continued to be claimed up to December 31, 2015.”

Larman, 47, of Tamerton Drive, who is of previous good character, admitted fraudulent evasion of VAT.

Chris Knox, mitigating, told the court that the former baker had set up the business legitimately about 10 years ago following all the correct procedures.

He even expanded at one stage to have three outlets, but trade began to dwindle at the original premises due to redevelopment by Gateshead council of the area surrounding Saltwell Road, with a lot of demolition of older residential areas, taking away a lot of his clientele.

“He continued to make the reclaims after he ceased trading to help clear off the debts of the business, but it was not to fund any high living.”

Mr Knox said Larman has returned to his original trade of baking and now works in the Lake District, but is the main “bread winner” providing for his family, but has insufficient means to pay off the outstanding sum.

Jailing him, Judge Christopher Prince said a message had to be sent out to anyone else considering such a fraud that they risk ending behind bars for their actions.