A DIRECTOR of a party and events company has admitted illegally trying to reclaim tens of thousands of pounds on the businesses’ VAT liabilities.

Claire Ann Gould has also admitted using forged invoices purported to have been sent to those companies, in order to back up the claims to Her Majesty’s Revenue and Customs (HMRC).

As director of Balloon Mania Ltd, All Wrapped Up Events Ltd and Belles and Beaus Ltd, based in Colliery Row, Fencehouses, near Houghton-le-Spring, she is said to have sought repayments of up to £175,639, on liabilities to pay £194,776 in VAT, between March 13, 2013, and the end of 2014.

Durham Crown Court heard that while entitled to some level of repayment, due to expenses incurred in the running of those businesses, it was much less than she claimed.

When asked for evidence to back up that level of claim, she submitted false invoices purporting they were sent to her businesses, seeking payment for goods and services.

Appearing at a plea hearing, Gould, of previous good character, admitted charges of fraud by false representation and forgery.

But her barrister, Conor Quinn, said those pleas were made on a basis that the amount involved was £59,000, rather than the figures put forward by the prosecution.

Asked by Judge Christopher Prince for the Crown’s view, prosecuting counsel, Ian West, said: “We don’t accept that basis.

“She claims she has spent £1.295m in expenditure for those business, and particularly £194,000 in VAT, and has tried to reclaim, over a number of VAT returns for those businesses, £175,000 in total.

“When these claims go into the HMRC they don’t just pay out, they ask to see invoices to back up the claim for repayment.

“To cut a long story short, and, after a lot of prevarication, she supplied a number of invoices, totalling £59,000.

“In fact she had been paid about £85,000 before she was rumbled, as it were.”

Mr West said her claims were, “palpably” inflated, backed up by scrutiny of those businesses’ bank statements.

Although Mr Quinn questioned whether there should be a trial of issue over the amounts involved, Mr West said the difference between the prosecution and defence claims represent one level of sentence in the recommended guidelines for such cases.

Judge Prince adjourned to allow the defence to reconsider the figures, to see if a compromise can be reached, and bailed

36-year-old Gould, of Harwood Drive, Houghton-le-Spring, until the next hearing, on September 5.