A property landlord from Formby has been jailed for 12 months after failing to disclose rental income which led to him evading £42,000 of tax, and for cheating the tax credits system.

The fraud was discovered in 2003 when police arrested Formby man Ian Foulkes at the request of HM Revenue & Customs. He plead guilty to all charges at Liverpool Crown Court on 3 March 2006.

From 1995 to 2003 Foulkes purchased several properties across Merseyside using his own name and a variety of aliases. He let the properties out to tenants, to generate income but between 1997 and 1999 attempted to mislead HMRC (formerly the Inland Revenue) by submitting Tax Returns that did not include rental income. He also avoided paying tax on this income from 1999 onwards by failing to complete any Returns.

During this period Foulkes also submitted a number of claims for tax credits stating that he was a window cleaner but again failing to declare his rental income.

Foulkes was charged with failing to disclose the rental income, which subsequently caused a loss of £30,000 to the public purse. He was also charged with fraudulently claiming over £12, 500 in Working Families Tax Credit and Child Tax Credit.

Following sentence HMRC Investigator, Lisa Rosenthal said:

"This case highlights the position we can take when taxpayers do not give honest and accurate information about their earnings. Tax fraud is a serious issue and this conviction will send out a strong message to others who are tempted to try and cheat the system."