Crooked accountant who stole from staff jailed

A crooked accountant who abused his position to orchestrate a £1.7 million tax fraud - spending the stolen cash on lavish holidays and cars - has been jailed for four years.

Kenneth Scott, who ran an accountancy firm from five bases across the North East, charged clients VAT but failed to pay it to HM Revenue and Customs (HMRC).

The 69-year-old from Durham also deducted tax and National Insurance payments from more than 50 staff members, which he also kept instead of declaring.

This has had serious consequences for his former employees, including an impact on their entitlement to State Pension and their ability to claim certain benefits.

Gary Darrington, Operational Lead, Fraud Investigation Service, HMRC, said:

“As an accountant Kenneth Scott should have known better than to try and cheat the system. He stole from the taxpayer and damaged the tax records of his employees, which we have been working hard to correct.

“Accountants hold a position of enormous trust and this sentence should serve as a warning to the minority of corrupt professionals who wrongly believe they can use their knowledge to commit or facilitate tax crime.

“Anyone with information about suspected tax fraud can report it online.”

Scott spent hundreds of thousands of pounds from the proceeds of his crimes on himself, including a £30,000 cruise and an Aston Martin. HMRC has now restrained several assets, including Scott’s pension and a number of properties.

Scott was arrested at his home in April 2021 and admitted the fraud at Newcastle Crown Court. He was jailed for four years at the same court on 4 April 2025.

Action to recover the stolen cash is underway.

Notes to Editors

1. Broadcast interviews are available on request.
2. Kenneth Scott DOB: 23/04/1955, of Crook, Durham, admitted to two counts of Cheating the Public Revenue at Newcastle Crown Court on 15 February 2024. He was sentenced to four years in prison and disqualified as a director for ten years at the same court on 04 April 2025.
3. The business operated across five premises in South Shields, Bishop Auckland, Hexham, Sunderland and Benton.
4. Find out more about HMRC's approach to tax fraud at GOV.uk.
5. Follow HMRC’s Press Office on X @HMRCpressoffice.