TWO Hampshire businessmen convicted of a £1m VAT scam have been locked up for four years.

Raymond McGlynn, 51, and Jonathan Hayward, 42, who were found guilty of the fraud in February, also stand to have their homes and assets seized in order to recoup the money.

The pair traded as Hampshire-based Latedeal Ltd, a company which bought computer chips from within the European Union for resale in England. The goods were purchased without VAT being levied and sold on with it charged.

Sentencing, Judge John Boggis QC said: "This is a very large sum of money - just think what the NHS could do with an extra £1m."

Michael Magarian, representing McGlynn, said: "Certainly there is good in this 51-year-old man and he has led a largely offence-free life."

Mr Magarian said that 20 years ago McGlynn had come to the rescue of a police officer and prevented him from being beaten up. He added that McGlynn, who had been married for 32 years and has two children, was diabetic and suffered extremely high blood pressure.

Mr Magarian said: "The fraud was a fairly unsophisticated and stupid fraud, and that should be reflected in the length of sentence.

"He is scared of the custodial sentence he faces and to a large extent he has been unravelled by the whole business of being on trial."

Charles Burton, defending Hayward, said: "He has led a blameless and creditable life."

He said Hayward, who suffers from multiple sclerosis, acted as carer to his adoptive mother.

At their trial at Southampton Crown Court, jurors heard Latedeal Ltd was an off-the-shelf business they had bought with offices in New Milton.

Hayward, of Southwood Avenue, Walkford, Chirstchurch, became its sole director and McGlynn, of West Road, Bransgore, was its secretary.

Prosecutor Richard Onslow said the men defrauded customs and excise by:

Trading at a loss by buying and selling of computer chips at a time when they had secured from their only customer MST Associates, then based at Hayes in Middlesex, more than £300,000 due in tax

Charged VAT on the sale of chips to MST

Failed to make any adequate provision for the full payment of VAT

Removed money from bank accounts in the firm's name for reasons other than trading in chips

The defendants claimed they had not paid VAT because they did not understand the law and had received bad advice.

Judge Boggis said: "You were fuelled after limited success in previous business ventures by the very large turnover that you were enjoying and you enjoyed the trappings of a very large cash flow."