Lesley Dykes of Markinch stole the money during a five-year period, an HM Revenue and Customs (HMRC) investigation revealed.

Between August 2011 and July 2014 she submitted false returns for the Crusoe Hotel in Lower Largo and Dunnikier House Hotel in Kirkcaldy and failed to submit any returns at all from August 2014 to July 2016 – evading £380,000 in tax.

Cheryl Burr, assistant director, Fraud Investigation Service, HMRC, said: “This was a cynical and contrived plot to steal money that helps fund our public services. The tax this hotelier stole is the equivalent annual salary of 15 new-start nurses in Scotland.”

Sineidin Corrins, procurator fiscal for Tayside, Central and Fife, added: “The investigation into Lesley Dykes’ fraudulent activity was complex and lengthy. The sentence should serve as a warning to others who seek to steal from the public purse.

“We will continue to work in partnership with HMRC to ensure those who seek to profit from VAT fraud are brought to justice.”

HMRC officers raided Ms Dykes’ home in Markinch’s Mount Frost Place as well as the two hotels on 9 August 2016. Documents, mobile phones and computers were seized from the three premises.

Huge amounts of sales records from both hotels were taken by officers – documents that Dykes had previously told HMRC were destroyed in a flood. She was charged with VAT fraud the same day after being interviewed under caution.

On 17 November 2020 Dykes pleaded guilty to VAT fraud and has now been sentenced to two years in jail.