These schemes are largely run by non-compliant umbrella companies, which do not comply with their obligations to deduct taxes under PAYE on payments made to their workers. In the last year alone, 18 promoters have been named and shamed, alerting individuals to the risk of signing up to such schemes.

HMRC estimates that only 20 to 30 promoters are responsible for the dodgy schemes, and is stepping up action to combat abuse.