Ian Jones, 48, who was recently living in a motor home in Swanwick, received a prison sentence of two years and nine months at Winchester Crown Court, after an investigation from HM Revenue and Customs officers.

Mr Jones and Gary Fernihough, from Stoke-on-Trent, set up three wholesale businesses on the premise of selling animal feed, straw and hay, which turned out to be a scam to reclaim £1.2m in VAT.

Peter Hollier, criminal investigation assistant director at HMRC, said: 'This calculated attack on the VAT system not only robbed the exchequer, and therefore honest UK taxpayers, of public funds, but is also unfair to respectable businesses that diligently abide by the rules.

'Today's sentencing is the culmination of hard work by dedicated HMRC officers who will not hesitate to pursue those who commit this type of offence, so they can be prosecuted by the Revenue & Customs Prosecutions Office.'

Sentencing, Judge Barnett said: 'You are a disgrace to the commercial world. This fraud took place over a period of time and required application, sophistication and determination.'

Anyone with information about tax fraud can contact the 24-hour Customs hotline on 0800 59 5000 or at customs .hotline@hmrc.gsi.gov.uk.