Private tutors, fitness, dance and lifestyle coaches are to be targeted as part of HM Revenue & Customs' (HMRC) efforts to reduce tax evasion, according to a leading local tax expert.

Simon Warne, tax partner at Crowe Clark Whitehill, a national firm offering audit, tax and business advisory services with local offices in Tunbridge Wells and Maidstone, believes Kent will be high on the taxman's list of targets.

He said: "HMRC feels that tutors and coaches present a high risk, in terms of underpaying tax, because these professionals are well-placed to earn money from providing tuition and coaching - either as a main or a secondary income, with many paid in cash.

"The county has a thriving community of tutors and coaches, in part because many families in Kent have their children coached to help them secure 11-plus exam success and a place at a grammar school. In recent years there has also been a growing market for dance and fitness classes, and HMRC will be looking at whether the instructors, many of whom probably have more than one job, are fulfilling their tax obligations."

HMRC recently announced it is to start using "web robot" software, combined with its Connect computers system. The aim is to search the internet to identify people who have failed to pay the right amount of tax as a result of having a second undeclared job or being self-employed.

Simon Warne added: "Over the past few years HMRC has provided disclosure opportunities for various businesses including doctors, dentists and plumbers. Following the end of the disclosure periods, HMRC launched investigations into individuals. The disclosure facility 'Tax Health Plan,' which was provided for doctors and dentists in 2010, has already produced additional tax revenue of over £10m so far, of which more than £1m was raised from a single doctor and £300,000 by one dentist.

"Taking advantage of disclosure facilities may significantly reduce potential penalties, and experience of previous crackdowns suggests that anyone is eligible to take advantage of the disclosure opportunities. The new facility, mainly for those providing private tuition and coaching, is expected to open in autumn 2011 and may also include a disclosure opportunity for 'all'.

"My advice, especially to those targeted by the disclosure opportunities, is to ensure that all tax affairs are up to date, and if not, to ensure that they are brought up to date during the disclosure period to avoid unnecessary and excessive penalties."

n Simon Warne can be contacted on on 01622 767676 or e-mail simon.warne@crowecw.co.uk