A WATCH dealer, who dodged £1.25 million in tax by falsifying import paperwork to show luxury watches were worth as little as $50, has been jailed for three years.

Darren Reay, 46, admitted wrongly describing Rolex, Cartier and Breitling watches as low-value ‘precision instruments’ – enabling him to pay import VAT of just £7,805 during a four-year fraud uncovered by HM Revenue and Customs (HMRC).

Reay, who traded online via eBay as Darren Reay Watches and also from Wight’s Watches in Cowes, Isle of Wight, used the money to fund a lavish lifestyle of luxury properties, cars and designer watches.

Colin Spinks, assistant director, Fraud Investigation Service, HMRC, said: “Reay’s crimes were driven by pure greed to fund a luxury lifestyle he couldn’t afford.

“We will ensure honest, hardworking businesses do not suffer from being undercut by fraudsters like Reay.”

Reay left the Isle of Wight in June 2014, but continued trading online through a business registered in Barnet, Greater London, while living in Chilton Moor, near Houghton-le-Spring.

He admitted the fraudulent evasion during a hearing at Teesside Crown Court.

Over 800 watches were seized during a search of Reay’s then-home in Morley Terrace, Chilton Moor, in March 2015.