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.
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.
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