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A new rule for "all" UK citizens could pave the way for a £600m tax grab, it is warned. A new digital ID scheme will help combat illegal working while making it easier for the vast majority of people to use vital government services, the Labour Party says.

But HMRC will fill in sections of tax returns automatically using digital identification as part of a push to secure unpaid revenue and prevent “error” by the public.

HMRC is “interested in exploring further how digital identification models supported by data and technology improvements can benefit the tax and customs system”, the tax authority has told the Telegraph newspaper ahead of the changes.

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One report, called The Economic Case for

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