A Freedom of Information request by union Unite has revealed nearly 1.1 million workers were paid via the Construction Industry Scheme (CIS) in 2016/17, an 8% increase compared to last year (992,973).
Overall, the figures mean 47% of the entire construction workforce is now paid via CIS.
Gail Cartmail, assistant general secretary of Unite, said the figures "demonstrate that bogus self-employment in construction is out of control".
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CIS is the stand alone tax system for construction workers. Workers paid via the scheme are normally officially classified as self-employed, however the nature of their engagement means that the vast majority are bogusly self-employed.
Ms Cartmail said: "Employers are simply ignoring the rules in order to line their pockets and deny workers their rights.
"The only way that workers will be treated fairly and decently is by introducing clear rules which ensure that workers are either genuinely self-employed or paid by a standard PAYE method. Without such a reform productivity in construction will remain low, accidents and ill health will be high and the industry will fail to train sufficient numbers of apprentices."
(LM)
