Avoid payslip fraud

if you’re an agency worker, temporary worker or contractor, or you work through an umbrella or payroll company – Check that the tax and National Insurance shown on your payslip or deduction statement has been paid correctly

HMRC have published guidance for those who could be impacted by payslip fraud.

Organised labour fraud is when businesses or criminals use labour supply chains to avoid paying tax they owe to HMRC.

One way this can affect workers is through payslip fraud. This is when a payslip or construction industry scheme (CIS) deduction statement shows deductions that have not been paid to HMRC.

You may not realise there’s a problem until you try to claim a benefit or tax repayment, check your National Insurance record, or access your pension. Checking your payslips regularly can help you spot problems early and protect yourself from fraud.

What is payslip fraud?

Payslip fraud happens when someone is given:

a payslip showing tax deductions that have not been paid to HMRC
a CIS deduction statement showing deductions that have not been paid to HMRC
incorrect information about pay or tax deductions
no payslip at all

Fraudulent payslips may look genuine, even if the tax deducted has not been paid.

How to avoid payslip fraud

They provide guidance at:

Check if the tax on your payslip is correct

Check the deductions match official records

To check deductions, you can use your:

Personal Tax Account
HMRC app
National Insurance record
Student Loan repayment account, if you have one

If your payslip shows pension contribution deductions, check they’ve been received by your pension provider. You should receive an annual pension statement. Compare it with the deductions shown on your payslips.

Warning signs of organised labour fraud

Be cautious if:

your payslips or CIS deduction statements regularly change format or show different employer names
you’re frequently moved between payroll companies or contractors
your payslip includes vague deductions, like ‘admin adjustments’
your take-home (net) pay does not match the hours you worked
you’re promised your full pay without tax being deducted
you receive no payslips
you payslips appear incorrect or inconsistent
you can no longer access your payslip portal
you’re asked to set up your own limited company or personal service company
you’re suddenly moved to a different umbrella, payroll, or employment company without a clear reason
you have problems accessing company benefits, like pension or voucher schemes
you’re not given a Key Information Document each time your employer changes