The introduction of these tax evasion checks will allow HMRC to scrutinise workers in what it sees as ‘high risk’ sectors for tax evasion due to the prevalence of cash-in-hand work or widespread use of cash, says UHY Hacker Young, the national accountancy group.

From 4 April, taxi drivers, minicab drivers and scrap metal merchants will have to confirm to HMRC that they pay their taxes in full in order to renew their licences from local licensing authorities.

If they have underpaid tax and do not tell HMRC about it, they open themselves up not only to their licences to operate being lost but also to potential criminal prosecution.