Manchester and Liverpool are being targeted by HMRC in a bid to prevent the fraud which sees criminal groups run payroll or umbrella companies that sit in the supply chain between the worker and the construction site they work on.

These groups deduct tax, National Insurance and Construction Industry Scheme (CIS) contributions from workers’ pay but fail to pass them on to HMRC.

Workers often do not realise this is happening, as their payslip or Pay Deduction Statement can still show the deductions as if they had been paid.

Edwige Hill, Deputy Director in HMRC’s Fraud Investigation Service, said: “We are taking robust action to tackle payslip fraud while helping workers spot the warning signs of it.

“We are making arrests and recovering tax from the criminals and supply chains behind this fraud, plus working with trade bodies to raise awareness.

“We urge construction workers in Manchester, Liverpool and across the UK to check their payslips and compare them to their Personal Tax Account on GOV.UK, and report anything that doesn’t look right – it could protect thousands of pounds of your money.”

Workers should also be alert to other warning signs, such as not receiving a payslip or Pay Deduction Statement, receiving one that looks fake, or seeing deductions that do not match their Personal Tax Account.

They may also not recognise the company name shown on it.

Anyone with concerns should report it to HMRC by searching ‘report tax fraud’ on GOV.UK. They should keep hold of payslips, contracts and any evidence of deductions, as this will help HMRC correct their National Insurance record if needed.