FIRMS in East Lancashire are being warned that the taxman is getting tougher.

Under new powers the Inland Revenue can now investigate firms without having to say whether it has been targeted for a specific reason or has been chosen at random.

"It is going to be very difficult for some companies particularly when they don't know why they have been targeted," said Peter Howarth, director of tax investigations at North West accountants Lathams.

Mr Howarth said it was important companies made sure they keep business and personal financial records for at least seven years.