HMRC has said it wants to avoid the common situation where multiple inspectors would make a compliance visits in consecutive months, according to the Daily Telegraph.

It is testing a new inspection process for six months from June which, if successful, will be rolled out nationally from January. Firms assessed as being at high risk for underpayment of one tax will now be automatically assessed for a full range of taxes.

However, honest traders will be treated with a light touch. An HMRC spokesman said: 'We want to get off the back of honest businesses'.

David Gauke, exchequer secretary, said: 'We know that agents, individuals and businesses find some of HMRC's current compliance practices drawn out and costly. A single compliance process could help HMRC improve the customer experience and reduce costs.