Taxpayers have until the 22 June to declare offshore bank accounts to HM Revenue & Customs or face much higher tax penalties on any unpaid tax.

Dave Hartnett, director general of HM Revenue & Customs, told the BBC that people who were honest had nothing to fear.

However anyone who tried to evade large amounts of tax could face criminal proceedings.

‘We have information on about 400,000 individuals with offshore accounts. We don't know if they have paid tax or not. We're offering them the chance to come forward and put things right if they need to,’ Hartnett told BBC radio.

After June 22, he warned HMRC would start investigating those who haven't come forward.

Anyone with an offshore account should notify the Revenue by 22 June. They then have until the November 26 to submit the figures. They will have to pay the full tax owed, going back 20 years in some cases, plus interest and a penalty of 10% of the tax due. No penalties are charged on tax due of less than £2500.

Further reading:

4,000 sign up to offshore tax disclosure scheme

All 550 UK banks to face offshore accounts probe

Hartnett: FSA could probe offshore accounts