A man has been jailed for trying to dodge paying VAT on items he sold online.

Gregory Allnutt of Ellery Road, Upper Norwood, avoided paying more than £420,000 in VAT.

The 40-year-old internet trader pleaded guilty to twelve counts of being tax evasion, following an investigation by HM Revenue and Customs (HMRC).

Today he was jailed for one year and eight months for each of the twelve counts to run concurrently.

Southwark Crown Court heard the dad-of-one set up a company called Shapewise to sell nutrition products from his home.

But instead, he bought tax-free electrical goods from the European Union through online site Pixmania, before selling them on for a profit.

Instead of declaring the sales and adding on the price of VAT, Allnutt undercut his rivals and maximised his profits.

Between 2007 and 2010, he filed 'nil' accounts and falsely stated he had earned no money. He then blew the cash on a luxury car and two motorbikes.

The court was told Allnutt did not realise he had to pay VAT on the goods he sold, but in a meeting with his accountant in 2007 he was told he owed £67,000.

He continued with the scam until December 2010, when he was caught by inspectors from HMRC.

Chris Martin, HMRC's Assistant Director of Criminal Investigation, said: "Allnutt thought that by trading online he could avoid paying his taxes, but he has discovered that isn't the case.

"Our successful investigation and today's sentencing send a clear message to others involved in such crime that our investigators will identify and pursue you."