Accountant on suspicion of sub-contractor fraud

Four people, including an accountant, were arrested by HM Revenue and Customs (HMRC) on suspicion of a £2.2 million tax fraud following early morning raids.

It is believed the suspects set up an elaborate scheme of sub-contractors within the civil engineering industry to defraud HMRC of VAT and PAYE.

Martin Brown, Assistant Director, Criminal Investigation, HMRC, said: "This is a major investigation into what we suspect is a well organised and professional attempt to manipulate the UK tax system to steal around £2.2 million - money which would otherwise be used to finance the UK's vital public services."

Six properties were searched, including addresses in Essex, Hertfordshire and two properties in the Republic of Ireland, where computers, business records and mobile phones were seized for forensic examination.

All those arrested have been bailed until March 2015 and investigations are ongoing.