A MAN who made fraudulent VAT repayment claims on behalf of his pantomime production company was spared an immediate prison sentence.

Although Scott Edward Clarkson could have been behind bars during the forthcoming panto season, the show will go on, as a judge was impressed at his charitable and educational work.

The curtain could have fallen on the business after HM Revenue and Customs (HMRC) officials’ suspicions were aroused by claims for a total VAT refund of £32,517, submitted by Clarkson, on behalf of Pro Show Hire Ltd and Fame Factory Spotlight, performing arts companies he ran from offices in Bishop Auckland, in November 2013.

When queried about the claims, Clarkson submitted invoices from companies from which he supposedly bought sound systems, lighting, costumes, props and other services, all of which were found to be false.

Ben Thomas, prosecuting, told Durham Crown Court the companies concerned told investigators he was not a customer, and so no actual repayment was made.

Despite his initial denials of wrong-doing, 41-year-old Clarkson, of Saxon Court, Bishop Auckland, admitted four charges relating to the fraudulent VAT claims, at a hearing last month.

Simon Perkins, mitigating, told the sentencing hearing that Clarkson reacted "wrongly" to the pressure of maintaining the books while performing and running a business.

He added: "No VAT refund was actually made, so it’s not a case where the taxpayer has lost money.

“There’s no evidence of high living. He supports his family, but they don’t lead an extravagant way of life.

“It’s a family business and makes a positive contribution."

Mr Perkins, referred to Clarkson’s charitable work, as backed by testimonials submitted to the court on behalf of registered charities, adding that much of his work is with schools, and environmental groups.

Judge Christopher Prince told Clarkson: “Not only are you a man of otherwise good character, but of positive good character who has made a significant contribution to charities in recent years.

“It’s apparent to me that you will make a significant contribution in years to come.”

He imposed a 16-month prison sentence, but suspended it for a year, and chose not to disqualify Clarkson from acting as a company director.

The judge said it should allow Fame Factory Spotlight to stage Jack and the Beanstalk, a festive panto run for audiences of up to 38,000 people, in Bolton, in December and January.

The company's website also highlights previously successful touring productions of pantomimes Beauty and the Beast and Sleeping Beauty, as well as an adults only pantomime, titled Dick Whittington and his Amazing Pussy

Speaking after the case, Clarkson said: “I made a foolish mistake and I’m not making any excuses.

“I was under a lot of pressure at the time.

“What happened was I put in some wrong invoices and, well ... it’s still something that happened.

“I do a lot of charity work and the judge seemed to recognise that.

“I know it was a very stupid and foolish thing to do but, fortunately, because I have done other positive stuff in the past, I got away with a lighter sentence and that has given me a little bit of leeway.”

Diane Donnelly, assistant director of the HRMC’s fraud investigation service, said: “Clarkson tried to supplement his income by greedily dipping into the pockets of honest, hard-working taxpayers.”

She added that more resources are being poured into bringing such fraudsters to justice.