The directors and employees worked for Hull-based construction installation companies Pink Innovations and Pink Services Ltd between 2012 and 2018, when the ‘sophisticated’ offending took place. They were sentenced this week at Hull Crown Court.

The court was told that the ringleaders spent their ill-gotten gains on boats, caravans, holiday homes and private education for their seven children.

Facing the charges were directors Mark Anthony Stead, 49, and his wife Jennifer Everett, 44, of Croxton near Grimsby, and Mark’s brother David Stead, 61, now of Sutton Coldfield; Denise Milestone, 61, of Brocklesby, near Grimsby, and Benjamin Wragg, 32, of Barton upon Humber.

The group were all sentenced at Hull Crown Court

However, only Mark Stead and Jennifer Everett made any kind of financial gain from the scam, which saw them pocket employees’ national insurance payments for themselves rather than declaring them to HMRC and avoiding paying VAT. David Stead, who managed the firm, personal assistant Milestone and IT consultant Wragg made little more than their salaries despite assisting their boss.

The business was based at Estuary Business Park on Henry Boot Way in Hull.

Mark Stead was jailed for six years, his wife for 18 months and his brother for two and a half years. Milestone, also known as Denise Nielson, was sentenced to 18 months and Wragg to two years.

£7million of fraudulent VAT claims were made in total. When HMRC sought to check the validity of the repayment claim of £98,083 in May 2017, David Stead, Ben Wragg and Denise Milestone assisted Mark and Jennifer Stead in a ‘sophisticated and labour-intensive attempt’ to cover up the fraud by creating a large number of false purchase orders, supporting fictitious VAT summaries and forged bank statements.

Denise Milestone lied about father-of-seven Mark Stead’s whereabouts to a HMRC compliance officer, telling them that her boss was in hospital when he was not.

HMRC’s Fraud Investigation Service assistant director Stuart Lucas said: "This group were hell-bent on stealing from the public to fund their own lavish, greedy lifestyles.

“The cost to the public purse was millions of pounds that could have been used for essential public services in the NHS, social care and education.

"This case should send a clear message to tax criminals like this group. Don’t be as presumptuous as them and think you'll get away with tax fraud.

“We encourage anyone with information about suspected tax fraud should report it to us online. "

Directors and staff at Yorkshire construction firm jailed for £7million tax evasion fraud - with money spent on holiday homes, boats and private schools