A Liverpool couple who dodged tax and swindled benefits to fund a luxury lifestyle must repay £355,000 or face more time behind bars.

Bernard Knutsen, 69, and his wife Maureen, 63, who ran a pub and garage in the city, were jailed for a total of seven years for tax and benefit fraud following a joint investigation by HMRC, the Department for Work and Pensions and Liverpool City Council.

They now face losing their family home and pub business – Chaplin’s Bar in Lodge Lane – as well as expensive jewellery and tens of thousands of pounds in savings.

At a confiscation hearing led by HMRC at Liver...