Eight crooks have been sentenced for their roles in a £22 million tax fraud uncovered by police and HMRC.

The corrupt group, four of whom are from Kent, set up fake labour supply companies to keep VAT payments that should have gone to HMRC .

A complex investigation found they also kept tax deductions from subcontractors that were meant to be paid under the Construction Industry Scheme (CIS) tax system.

Following a trial at Southwark Crown Court they were all found guilty of cheating the public revenue and received sentences ranging from 18 months suspended to six-and-a-half years in prison.

Among them were Gary Peck, 44, of Maidstone Road in Chatham, who was jailed for four years, while his brother Stuart Peck, 42, of Pilgrims Road in Rochester, received two-and-a-half years.

Both were also banned from being company directors for six years.

William Chadwick, 27, of East Street in Hunton near Maidstone, was given an 18-month sentence suspended for 24 months after being caught with £40,000 in cash.

The investigation found that Essex businessman Robert Hayward, 56, was the ringleader.

He allowed his companies’ payrolls to be processed through fake firms and took £2.8million as his share.

Hayward was jailed for six-and-a-half years and disqualified from being a company director for 10 years.

Danny Kaufman, 54, of Botsom Lane in West Kingsdown, was sentenced to five years and disqualified from being a director for 10 years after helping introduce the fraudulent payroll system.

Others sentenced included Louise Roman, 58, of Maldon in Essex, who received a two-year sentence suspended for two years; Sam Montague, 41, of Cambridgeshire, jailed for 30 months; and Mark Jennings, 44, of Hertfordshire, who received a two-year sentence suspended for two years.

Both Montague and Jennings were banned from being company directors for six years.

Detective Constable Dameon Shaw said the group “knowingly took part in a scheme to steal tax money” by keeping VAT and CIS payments that should have gone to HMRC.

He added: “Today’s court sentences show that they are being held accountable.

“Tax fraud affects everyone and no matter how well they tried to hide it, our investigators uncovered the truth and brought them to justice.”

HMRC’s Ian Hackett said the prison terms and director bans should warn others against trying to undermine the tax system.

He added: “The prison sentences and significant director disqualifications they have received should serve as a warning to others that we can and do act against directors who try to undermine the tax system and steal money that funds our public services.”