Tax avoidance schemes and their promoters named by HMRC

Tax avoidance schemes have been named for the first time by HMRC. The two schemes are Absolute Outsourcing promoted by Absolute Outsourcing Ltd in Bury and Equity Participation Scheme (EPS) promoted by Purple Pay Limited of London.

Both schemes involve individuals agreeing an employment contract and working as a contractor. The schemes pay contractors the national minimum wage with the remainder of their earnings paid through a loan with the aim of avoiding National Insurance and income tax.

HMRC advises anyone involved in the schemes to withdraw from them as soon as possible.

This is the first time HMRC has used its new powers to name tax avoidance schemes and their promoters as part of a campaign to warn the public not to get caught up in tax avoidance.

By releasing the details of these schemes HMRC is letting taxpayers know as early as possible so they can steer...