HMRC is doubling the number of specialist officers for tracking down labour providers who break the rules and offer is offering free “health checks’ to businesses to help them use legitimate organisations to find staff.

Traditionally labour providers are used in agriculture and construction but the crackdown will cover all sectors where there is a demand for a flexible workforce to meet seasonal and market demand.

The campaign is expected to bring in an additional £0.5billion in tax across all business sectors over the next four years. Organisations found guilty of tax evasion could face jail.