An Oxfordshire man has been jailed for 21 months for tax evasion worth more than £1.5m.

Neil Gentleman-Hobbs, 35, a father of three of Curbridge Close, Witney, registered his limited company, Neil Hobbs Ltd, for VAT purposes in July 1997, but failed to declare VAT he was charging clients on computer components, Guildford Crown Court heard.

Between March 1999 and July 1999, Neil Hobbs Ltd purchased computer microchips from Ireland, then sold them to other UK-based companies, charging VAT on their invoices.

Instead of passing the money on to HM Customs and Excise, the company used the VAT as its profit margin on microchip sales.

Bogus VAT returns were submitted with false invoices, and bank statements were falsified to back up the returns. The returns, invoices and bank statements did not record microchip sales or money made from them.

In total, Neil Hobbs Ltd sold computer chips worth £10,286,485, evading £1,530,819.78 of VAT.

The matter came to light after a routine inspection by HM Customs officers into one of Hobbs' clients.

Defending, Jamie Riley said: "This is a man who has ruined his own life.

"If he were a man with more courage and greater personal resolve he would not have found himself in this position."

Gentleman-Hobbs has also been disqualified from being a company director for 10 years.

Another court hearing will be held in June to find out whether proceeds from the crime can be confiscated.

Customs spokesman Kelly Jefferiss said: "Customs are delighted with the result of this case.

"VAT evasion is a serious crime and is not only defrauding the Exchequer, but the honest taxpayer, who ends up having to foot the bill as well.

"This case stands as a warning to others that this will not be tolerated."