Glenville John Hill, of Spout House Lane, Wortley, admitted tax fraud in December 2015 after HM Revenue and Customs discovered he sold more than 1,300 vehicles from his driveway, but he did not pay any Income Tax, National Insurance or VAT.
The 57-year-old was sentenced to 300 hours of unpaid work in 2017 and ordered to repay £250,000 of his unpaid tax but failed to do so.
Martin Lynagh, Assistant Director of HMRC’s Fraud Investigation Service, said: “It is important that criminals like Hill don’t benefit from their crimes. That is why HMRC will always look to reclaim their criminal profits.
“Hill stole money which should have been used to fund our public services. Now he’s paying the price behind bars for failing to repay what he stole.
“But is doesn’t end there. Hill still owes the money and until he pays it the amount will increase as interest is added daily.
“We will continue to pursue criminals like Hill who think stealing from taxpayers is acceptable.”
“If you know of anyone committing VAT fraud you can report them.”
Hill turned the driveway of his farmhouse into a makeshift forecourt and sold used vehicles over eight years.
But instead of registering his business with HMRC, he pocketed the money he should have paid in tax, National Insurance and VAT.
When he was originally sentenced to unpaid work he was told to repay some of the money he owned within three months.
He was sentenced to three years behind bars following a hearing at Leeds Magistrates’ Court last week when it was revealed that he had failed to settle his debt.
His debt remains and increases by £54.69 a day until paid. The amount currently stands at more than £252,108.
During his original court case in Sheffield it emerged that Hill sold more than 1,300 vehicles worth £8.5 million between December 2004 and April 2013.
He failed to register his business, which originally traded as Spout House Motors before changing its name to Deutschtek, with HMRC, and pocketed £1.1 million he should have paid in tax, National Insurance and VAT.
Records with British Car Auctions showed he purchased 1,384 vehicles and made just over £8.5 million.