HM REVENUE & Customs (HMRC) is cracking down on VAT rule-breakers.
A new campaign will focus on people and businesses who are trading above the VAT threshold but who have not yet registered for VAT.
HMRC intelligence director Mike Wells said the push to trap tax-dodgers would start in the summer.
“We’re already in contact with a number of interested parties and we look forward to being even more open about our compliance activity to ensure we reduce the tax gap and help customers pay what they owe,” he said.
Each campaign is aimed at reducing the tax gap by focusing on areas where a significant underpayment has been identified.
HMRC has raised more than £500m from voluntary disclosures and a further £100m so far from follow-up activity. Previous campaigns have targeted offshore investments, medical professionals and people working in the plumbing industry.
HMRC uses new technology and legislation to gather and analyse data, from internal and external sources, to identify people who should come forward. This has provided thousands more investigations, including criminal investigations.