CLIENTS of Jersey firms could be on the receiving end of a crackdown by the UK tax authorities this week.

As several national newspapers have reported this week, the newly merged Her Majesty’s Revenue and Customs (HMRC) have been sending out letters to UK residents with offshore bank accounts asking for a response within 30 days.

The Revenue say they are sending out the letters as a pilot exercise to help them deal with the ‘significant’ use of offshore bank accounts ‘to hide the proceeds of tax evasion’.

The Institute of Chartered Accountants in England and Wales (ICAEW) have accused the Revenue of adopting an ‘intimidating’ tone and say the letters will upset, anger and frighten people, rather then encourage them to sort out their tax affairs.

Jersey tax specialists have been well aware for some time that the Revenue has set up specialist units specifically to target offshore tax fraud, mainly to fulfil the requirement of UK Chancellor Gordon Brown for an additional £1.

billion in revenue over three years.