James Biniaz, 30, and Mohammad Akhtar, 41, both admitted conspiracy to cheat the government through a “sophisticated and planned VAT fraud”.

During the trial held at the Old Bailey, married father of two, Akhtar, also admitted laundering the proceeds.

Judge Daniel Worsley said: “This was a very sophisticated and planned VAT fraud and you succeeded in defrauding just short of £100,000.”

Turning to Biniaz he said: “You were at the heart of the conspiracy. It is impossible for me to do anything other than send you to prison.”

Biniaz, who served time in prison for robbery and assault in 2003, set up a bogus company called Coten Recruitment Solutions Ltd in 2005.

However, the company remained largely inactive until 2008, and it wasn’t until June of the same year that Biniaz submitted a fake VAT claim requesting a tax rebate on the £600,000 freehold of the company’s ‘headquarters’.

The pretend property’s address was given as, The Headlands, Kettering, Northants.

The duped HMRC returned a cheque for £98,560 to Coten Ltd, which the fraudster immediately banked.

Two other men were cleared of wrongdoing in the fraud following a separate trial in Blackfriars Crown Court last week.