‘Wheeler dealer’ inmate, 47, who earned £30,000 from trading in prison is thought to be the first Brit convicted of evading income tax on cash made behind bars

An inmate who made £30,000 while in prison as a ‘wheeler dealer’ is believed to be the first Brit convicted of evading income tax on cash he made behind bars.

Nigel Harker was locked up in HMP Northumberland in 2020 and made money through ‘trading’ – on which he did not pay income tax.

The 47-year-old man had initially been charged with blackmail in relation to his illegal jail cell enterprise, which he denied. Instead he pleaded guilty to evasion of £3,080 income tax.

A judge said the charging decision was an ‘interesting’ approach which may not have been seen in this country before and likened it to the famous Al Capone takedown.

Harker was due to be sentenced at Newcastle Crown Court yesterday but left the building during a break in the hearing.

A warrant has subsequently been issued for his arrest.

Judge Stephen Earl jailed Harker in his absence and said: ‘Who said crime doesn’t pay?

‘I think I’ve seen this film actually, in 1931, when finally the FBI got Al Capone for his dealings with hooch, prostitution and drugs. Of course they couldn’t get him on any of those things and what did they get him on? Evasion of income tax.’

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In relation to Harker, Judge Earl said: ‘This was him basically selling produce in prison and not paying his dues.

‘It’s a rather interesting case but there is principle previously for it, not necessarily in this country but I’m sure it is a satisfactory resolution.’

Prosecutor Michael Cahill told the court: ‘In 2020 the defendant was a serving prisoner in HMP Northumberland where he was a wheeler dealer and trader.

‘Named individuals and others purchased items from him by way of trading and debts accrued.

‘Over the relevant period the defendant had a turnover of about £30,000.

Mr Cahill said the tax evasion period would have been around 12 months. 

The lawyer continued: ‘Had he been paying tax on that, allowing for base rate allowances, it would have been around £3,080.’

Harker, of Hartlepool in County Durham, admitted the tax charge as well as a dangerous driving offence.

He was caught ‘flying through red lights’, travelling on the wrong side of the road and ‘almost having an accident’ in his BMW in Hartlepool in 2022. 

Judge Earl said he may also face an absconding charge for leaving the hearing.

Harker was sentenced to a total of 19 months in jail with a three-year road ban. 

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