Businesses in Lowestoft and Great Yarmouth have been hit with a warning after failing to pay �150,000 in tax.

A joint investigation by HM Revenue & Customs (HMRC) and the Department of Work and Pensions (DWP) revealed that 23 businesses had not been paying enough money to the taxman.

It comes as 10 companies were warned about paying workers below the minimum wage and two workers were cautioned for illegally claiming Jobseeker's Allowance while working.

The operation carried out on October 18 and 19 revealed that a third of the 64 businesses visited by the two organisations needed further investigation into their tax affairs.

HMRC spokesman Bob Gaiger said: 'This joint operation allowed us to tackle those traders who deliberately flout the law, by not paying the correct amount of tax.

'The penalties can be severe. We would advise traders to come to us before we come to them.

'In addition officers found some employers who were short changing their employees by paying them less than the legal minimum wage.'

Anyone with information about individuals or businesses involved in tax fraud can contact the HMRC on the tax evasion hotline on 0800 788 887 or via our website at www.hmrc.gov.uk/tax-evasion.