A man now living in the US who promoted a tax avoidance scam costing more than £2.5m has been banned by the UK government from serving as a director of any company for 10 years.

Alastair Lunt was the director of Peak PAYE Ltd which operated a tax avoidance scheme which resulted in the more than £2.5 million of unpaid tax between October 2020 and February 2022.

The scheme, which had around 250 users, promised to help its customers avoid paying income tax and National Insurance.

Lunt has been disqualified as a company director until September 2034.

Lunt had failed to notify HMRC of the scheme, which had around 250 users, as he was required to by law, the Insolvency Service said.

The 36-year-old, who now lives in southern California, was banned as a company director for 10 years.

Claire Entwistle, assistant director of operations at the Insolvency Service, said: "Tax avoidance schemes are marketed as ways for people to pay less tax but do not always work as advertised, landing customers instead with a big tax bill.

"Our public services also rely on everyone paying their taxes and schemes such as this deprive the UK of the revenue it needs to invest in our hospitals, schools and roads.

"Peak PAYE’s director, Alastair Lunt, was required to notify HMRC of the scheme. He failed to do so, causing substantial losses to the public purse.

"We will continue to work closely with our partners at HMRC to disrupt and clamp down on scheme promoters such as Peak PAYE."

Peak PAYE operated its tax avoidance scheme by paying contractors the National Minimum Wage, and then paying the remainder of their wages disguised as a financial option or as a salary advance.

The company, which had a registered office in Manchester, promised users they could avoid paying National Insurance and income tax as a result.

Promoters of tax avoidance schemes are required to inform HMRC. Peak PAYE did not do this between October 2020 and February 2022.

The company was ordered by HMRC to stop running the scheme in November 2022 and entered liquidation the following month.

The Secretary of State for Business and Trade accepted a disqualification undertaking from Lunt, and his ban started on Monday 30 September.

It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.