Offshore tax evaders could face penalties of up to 200% after a consultation which was launched in the 2009 Pre-Budget Report.
The government has already granted two amnesties that allowed tax payers to declare offshore assets and only face a penalty of 10%. They are also set to sign tax information agreements with Belize, Dominica and Grenada.
A current agreement with Liechtenstein is expected to raise nearly £1bn for the government in undeclared taxes, interest and penalties and the new anti avoidance programme should raise half a billion pounds annually until 2012/13.
Of course contractors who use a reputable umbrella company have nothing to fear about tax penalties. And there are ways to save money tax free in the UK that is not going to alert the attention of HMRC. In the budget yesterday the Chancellor announced that ISA limits will increase annually in line with inflation.
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