Tax cheats are being warned to declare all their income before it is too late in HMRC's latest outdoor advertising campaign to get people to pay the right amount of tax at the right time.

The campaign, which includes posters and billboards featuring a pair of eyes that are looking through a torn paper barrier - a clear warning that HMRC is on the lookout for tax cheats, is another element of government's multi-pronged spending review to tackle tax evasion, avoidance and fraud from 2011/12, with the aim of netting an extra £7bn a year by 2014/15.

David Gauke, Exchequer Secretary to the Treasury, said: 'Most people play by the rules and pay what they owe, but HMRC is cracking down on those who don't. Using the £917m the government has made available to tackle avoidance, evasion and fraud, HMRC is closing in on tax cheats.

'It always makes sense to declare all your income and tax dodgers are simply storing up trouble for the future; getting caught means higher fines, and in the most serious cases criminal prosecution. There is an alternative. Simply visit the new website and make a fresh start.'

Jennie Granger, HMRC's new director general of enforcement and compliance, echoed similar sentiments: 'Most people pay the right tax. Our campaign is aimed at those who don't.

'Our message to the small percentage who don't is a simple one: 'The net is closing in. We will detect you if you haven't put a job through the books, if you haven't declared investment income, if you've hidden assets offshore or if you haven't even registered for VAT'.

'For these people my message is: "Please don't fool yourself that HMRC won't do anything - it is only a matter of time before we catch up with you."'

'If you've declared all your income you've nothing to fear. And if you know someone who isn't paying what they should, get in touch with HMRC. It isn't fair that you pay what you should and they don't.

'This campaign is one part of HMRC's broader work to tackle evasion and fraud which includes taskforces, campaigns and offshore penalties.'

HMRC has set up a website - www.gov.uk/sortmytax - to help support those who want to pay the correct tax.