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Anderson Group, one of the recruitment industry's most high-profile companies, is promoting an "aggressive" tax avoidance scheme which experts are calling "abusive".

The scheme works by exploiting the government's Employment Allowance. The scam could deprive the Treasury of tens of millions of pounds of National Insurance payments.

Anderson Group says that all of its services are fully compliant with UK tax laws.

The Today programme secretly recorded Anderson Group's sales manager, Ian Moran, promoting the tax avoidance scheme to a recruitment agency.

The agency he was pitching to employs 300 workers, many of whom work in low paid jobs in warehouses or as labourers.

Mr Moran suggested that if the recruitment agency were to set up more than 100 limited companies with a couple of workers in each of them, each company could then claim the 拢2,000 allowance.

By Mr Moran's calculations the agency's National Insurance bill would then fall from 拢300,000 a year to zero.

Mr Moran suggested the recruitment agency, which has no intention of using the scheme, might like to spend the 拢300,000 on Bentleys and ski chalets. The ''job's a good'un,'' he said.

It says it is "totally incorrect" to say that Anderson Group is promoting the scheme and says it is a product being offered by one of its clients.
Anderson Group, which calls itself the UK's "leading provider of support services to the recruitment industry" has hundreds of agencies and thousands of contractors on its books.

The tax avoidance scheme works by exploiting the government's Employment Allowance which was introduced last year.

The allowance enables companies to claim 拢2,000 off their annual employers' National Insurance bill and was meant to encourage small businesses to take on more workers.

Zoe Conway reports.

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