EAST Lancashire's small traders whose annual turnover has remained just below £15,000 for two years are facing a a tax purge according to chartered accountants.

Individuals who declared earnings of between £14,000 and £14,999 in consecutive years are most likely to be signalled out for an inquiry by the Inland Revenue.

Self-assessment returns do not require full accounts to be submitted unless turnover exceeds £15,000, leading to suspicions that many are failing to declare their full income or inflating business expenses.

Douglas McMillan, president of the North West Society of Chartered Accountants, said people doing some freelance work, or running small, possibly part-time businesses, were most at risk.

He said: "The Inland Revenue says they are substantially increasing the number of inquiries in this category so people should ensure that their returns will stand up to close examination.

"If there is no explanation, tax officials will wonder why turnover has not increased and may suspect income has been manipulated to be kept just below £15,000.

"It is important to remember that incorrect tax returns can result in the taxpayer being fined as well as having to pay any outstanding tax."