Those with undisclosed offshore accounts should come forward now before they are discovered, accountancy firm Brookson has warned consumers.
HM Revenue and Customs has been extending its campaign against tax cheats, and has already identified 50,000 Britons who have been stashing money overseas. They now risk paying all their undeclared tax with interest, as does anyone else who does not declare.
HMRC’s Connect computer system will be scouring the Internet for information on tax dodgers - a category which now includes VAT defaulters, people earning an undeclared source of income as private tutors, and those who frequent e-marketplaces that do not pay the tax owed.
The system spots tax evasion that the taxation body had previously missed by comparing enormous amounts of information from both the HMRC database and third parties. Bank interest, property income and lifestyle indicators are all scanned for anomalies or inconsistencies.
“Although there is nothing illegal about having an offshore account, there is an obligation for UK resident individuals to disclose sources of taxable income to HMRC," said Martin Hesketh, Brookson managing director.
“HMRC will not tolerate ignorance of the law as an excuse so it’s vital that contractors are certain of their compliance status," he added.
