Perth Sheriff Court heard that Thomas Mullen of Tay Roofing and Building Ltd cashed customers’ cheques to avoid the tax payments.

Having been previously told by the judge to prepare for prison, the 33-year-old was instead placed on a curfew as part of a year-long restriction of liberty order.

Mr Mullen must stay at his home in Perth between 7pm and 6am each night for the next year, although he will be able to apply for holidays.

He must also carry out 300 hours of unpaid work.

Sheriff William Wood heard Mr Mullen’s two staff would have lost their jobs if their boss was given a custodial sentence.

The director has repaid his £200,000 debt.