HMRC has used its newly enacted legal powers to name two tax avoidance schemes and their promoters for the first time.

The two schemes are called Absolute Outsourcing, which has been promoted by Absolute Outsourcing Limited, which was incorporated in 2019, in Bury, Greater Manchester, and the Equity Participation Scheme promoted by London-based Purple Pay Limited which was set up in 2014.

Both schemes involve individuals agreeing on an employment contract and working as a contractor. The schemes pay contractors the national minimum wage while the remainder of their salary is paid through a loan to try to avoid National Insurance and income tax.