A HAMPSHIRE man convicted for carrying out a tax and National Insurance fraud worth almost £1m at a nursery is to be sentenced today. 

For years Michael Scott carried out a tax and National Insurance fraud worth almost £1m at two Southampton nurseries attended by hundreds of children.

This morning he will hear his sentence after he had failed to provide documentation to Her Majesty’s Revenue and Customs (HMRC) showing staff at Pixies Day Nursery they had paid tax and national insurance from 2007 and 2011.

Wearing a dark suit and tie, Scott, stood without emotion as the jury found him guilty of abusing his position of trust as an employer by failing to account for national insurance and/or pay as you earn (PAYE) payments.

It was at the end of the four-week trial in which Southampton Crown Court heard how staff had believed that their tax contributions through PAYE had been made.

But they had never received any tax certificates and the Inland Revenue service was not aware of any payments had been made.

Because these contributions weren’t made the employees’ future pensions were affected and former members of staff at the nurseries in Locks Heath and Woolston were unable to claim jobseekers allowance.

After months of investigation by HMRC Scott, 63, and his ex-wife, Marina Scott, both from Grovebury, Locks Heath, were eventually arrested.

Mrs Scott, 60, had pleaded not guilty to her involvement in the scheme and was acquitted earlier this month after Judge Peter Henry threw out the case against her of failing to disclose information that NI contributions and/or PAYE payments on behalf of staff had not been accounted for.

At the opening of the case prosecutor Robin Leach said: “During this period the defendants employed in the region of about 60 members of staff at any one time in these businesses and National Insurance contributions and tax payments through PAYE were deducted from the wages to a total value of in excess of £900,000.

"We’re not dealing with small sums here.

“It’s alleged that the defendants failed to file these returns in respect of the deductions being made.”

The court heard how staff had resigned as more and more of them found out that NI and tax payments had not been made on their behalf and were unable to track down tax certificates proving they had been made.

When employees made enquiries about certificates he had told management to ignore them, Southampton Crown Court heard.

Previously Mrs Scott spoke of her delight after being acquitted.

“I am very, very relieved,” she said “This has been hanging over my head for two and a half years. I love my children and my staff and that is what my function is.

“It’s a weight off my shoulders and I just want to get back to work.”

With none of his family in court Scott stood alone in the dock as the jury announced their unanimous verdict.