HM Revenue & Customs (HMRC) has warned contractors and other professionals with offshore accounts that they could face penalties of more than 200 per cent if the issue is not resolved by April 6th.

Increased penalties will be doled out for individuals with bank accounts in countries which do not automatically share tax information with the UK.

Territories will be split into three groups which determine which level of penalty will be given for failure to adhere to the rules.

Dave Hartnett, Permanent Secretary for Tax at HMRC, said: "We have made significant progress tackling international tax evasion and closing in on tax havens in recent years. This is the next step in increasing the deterrent against offshore non-compliance - and those who decide to take the risk will feel the full force of HMRC’s new penalties."

In other financial advice, Justin Modray of candidmoney.com has said that people must tackle debt in order to avoid it spiralling out of control. The expert explained that contractors and other professionals should tackle the most expensive debt first, in order to reduce the damage large amounts of interest can cause.