HM Revenue & Customs is close to unveiling its biggest clampdown on errant taxpayers for at least two decades, according to Birmingham-based BTG Tax.

The firm, part of the Begbies Traynor group, is warning people to get prepared.

Andrew McKenna, partner, said: "The coming 12 months will see HMRC finalise widespread new enquiry and information powers.

"These are the biggest changes I have seen in 22 years' involvement in tax compliance work."

Mr McKenna said it would mean more reviews, often at short notice, the naming and shaming of those who prove uncooperative; increased penalties for non-compliance, the ability to review all areas of taxation in a single enquiry; the monitoring of tax defaulters by a special HMRC unit for up to three years following an enquiry, a new Contractual Disclosure Facility aimed at suspected serious tax fraud; and further focussing on sectors along the lines of recent moves targeting offshore bank account holders, plumbers, dentists and restaurateurs.       

He predicts further investigation into key areas such as tax planning, non-residents and non-domiciled individuals.

And there will be greater interaction between HMRC and agents - accountants and tax advisers - including the investigation of those providing poor advice.

Mr McKenna noted: "The new powers and initiatives aim to change the behaviour of taxpayers, rewarding cooperation and disclosure with lower penalties whilst hitting the non-compliant harder with higher penalties and ongoing monitoring of their future activities.

"Third party information will be used more effectively and the new powers will allow enquiries to be driven to a faster conclusion.

"BTG Tax has experts able to provide effective solutions. An approach by HMRC needs to be professionally managed and dealt with in the most beneficial way from Day 1."

For more information about BTG Tax, please visit their website here: www.btg-tax.com