Cardiff printer Andrew Robert Allen has admitted to submitting false invoices to HMRC generating a total VAT loss of around £145,000.

The invoices related to non-existent sales between his former company, South Wales Media, which was placed into liquidation in April 2010, and St Fagans-based litho and digital firm Cardiff Printing Company, set up by 52-year-old Allen in 2008.

Before its liquidation Allen had renamed his company as South Wales Media from Allprint in January 2010. He then created six fake invoices in the name of Allprint showing supposed sales to Cardiff Printing Company and reclaimed the VAT on them. He also created a further invoice from Allprint to another firm, Pink Panther Digital, of which he was chairman.

Allen admitted seven counts of VAT fraud and was sentenced at Cardiff Crown Court to 32 weeks in jail, suspended for 18 months, unless he can pay £134,875 to HMRC by 31 March 2014, plus prosecution costs of £2,800. He had already repaid £10,000 ahead of last week's hearing.

He has also been electronically tagged for a three-month period during which time he must adhere to a curfew between 7pm and 7am.

HMRC assistant director of criminal investigation Colin Spinks said: “Andrew Allen thought he could commit fraud easily by falsifying invoices within his own businesses. In doing so he defrauded not just HMRC, but honest businesses who pay what is due, when it is due.

“Anyone who thinks they can operate outside the law should be warned that we are investing more time and effort than ever to identify and investigate tax cheats.”