Online sellers who use Ebay, holiday letting websites and other internet retailers will face one of the "biggest tax crackdowns in history" under government plans to obtain details of millions of online transactions.

HMRC wants to collect "bulk" information from internet companies to target thousands of people who fail to declare income they make online, costing the taxman billions of pounds every year.

The new powers will give the taxman access to information from Paypal, the online payment company owned by Ebay, smartphone app stores run by Apple and Google, holiday comparison websites and a host of other online retailers.

It means that thousands of Britons who let out their homes on the internet or sells good on eBay without paying tax will be targeted and have their affairs scrutinised.