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HMRC: Important information on tax avoidance schemes

April 12, 2022

HMRC has recently advised anyone involved in Absolute Outsourcing’s or Purple Pay Limited’s Equity Participation Scheme to withdraw from them as soon as possible to prevent building up a large tax bill.

The two named schemes are:

  • Absolute Outsourcing, of Foerster Chambers, Todd Street, Bury, Greater Manchester
  • Equity Participation Scheme (EPS), promoted by Purple Pay Limited (PPL), of Gracechurch Street, 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 wage paid through a loan to try to avoid National Insurance and Income Tax.

Naming avoidance promoters is one of a number of measures that HMRC is using to help people identify avoidance schemes as a part of the Tax Avoidance – Don’t Get Caught Out campaign. Other tools available to customers to help them steer clear of avoidance schemes include an interactive risk checker and payslip guidance.

If you believe you are involved in a tax avoidance scheme, you should contact HMRC as quickly as possible by calling 03000 534 226. Alternatively, if you have been encouraged to get into a tax avoidance scheme, have come into contact with someone selling tax avoidance schemes, or have become aware of a scheme, you can report it in confidence through HMRC’s online form.

Don’t forget – all suspicions of NHS fraud should be reported to the Local Counter Fraud Specialist Sophie Coster (Tel: 07436 268747), Chief Finance Officer, Dinah McLannahan; or NHSCFA by calling 0800 028 40 60.