Inspectors will be allowed to make lightning visits to taxpayers' homes, under powers due to come into force next year.

Under the extraordinary new rules, they will be able to turn up unannounced and demand to see tax records.

They will not just target big business but could hit any taxpayer if they suspect money is owed, whatever the amount.

"No tax evader should get away with it," one accountant said.

"But you don't want a knock on the door at 4am if you are a good, upstanding taxpayer, do you?"

Evidence emerged yesterday of the staggering tax dodging which is rife in Britain.

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Documents, released by Revenue and Customs while all eyes were on the Budget, reveal up to £41billion is lost.

This translates to a cost of more than £1,600 each to every household in Britain.

Tax bosses did not want to release the controversial figures, but were forced to publish them on their website under the Freedom of Information Act.

The 52-page document shows it estimates between £10billion and £41billion was lost through tax avoidance (the legal practice of using loopholes in tax legislation) and evasion (illegally avoiding paying tax) between 2000 and 2005.

This is known as the "tax gap" - the difference between the amount of tax owed and the amount of tax paid.

It only relates to "direct taxes", such as income tax, national insurance, stamp duty, capital gains tax and corporation tax.

Yesterday, Revenue and Customs insisted it had only been reluctant to publish the information because it was "unreliable" and "highly problematic due to lack of data".

The analysis, done in 2005, suggests up to £23.4billion alone was lost on income tax, capital gains tax and national insurance.

Full article here.