Shropshire taxpayers with offshore accounts have been warned they should declare their income rather than wait for HM Revenue and Customs to track them down.

Pam Mason, from Dyke Yaxley Chartered Accountants, in Shrewsbury, said: "Honesty is always the best policy and if you have undeclared income, it's always better to contact HMRC before they approach you.

"The penalties are likely to be lighter for people who come forward and co-operate than for people who deliberately try to avoid paying tax.

"And if you are approached via a letter from HMRC, it's always advisable to provide the information they need as quickly as possible."

Pam said there had been several amnesty periods where HMRC had offered reduced penalties in return for people coming forward and revealing their undisclosed offshore accounts and liabilities.

"But these have now ended, and it's vital that people take responsibility for their own destiny."

She said HMRC was not only interested in any undeclared interest, but also in any cash paid into or taken out of the offshore accounts.

"It will then look further into these payments to check whether they are linked to other assets which may be creating undeclared income, and of course, they are always on the look out for evidence of money laundering."

HMRC is continuing to concentrate its efforts to track down anyone who uses offshore accounts to evade tax, and new legislation introduced this year has increased the penalties tax dodgers may face.

"Using its legal powers, HMRC has accessed details of offshore accounts from over 300 banks and financial institutions, and is obtaining more detailed information through the European Savings Directive.

"So it's important to take control of your individual situation and take professional advice at the earliest opportunity."