A client of mine runs a small service business, spoke to me about this company "Compupay" (https://www.compupayservices.co.uk/). They have apparently offered to run his 300+ employee payroll - not just for free, but will pay him for the priviledge!
Their website blurb reads along the lines of being an umbrella company for employees (rather than contractors...). His staff will sign a contract of employment with Compupay (i imagine foreiting any employment rights with my client...), however the contract will state they will be used exclusively by my client. Compupay will then invoice my client for the staff cost (salaries + ER NIC + pension contributions) on a monthly basis.
He claims there will be no fee - Compupay insist they are funded by a "Goverment scheme"... They have also offered 4% of the staffing costs to him, as sort of commision for allowing them to run his payroll!
Obviously the above is throwing red flags left, right and center, along with: the name "Compupay" - searching online results in the large US payroll provider and the UK company website, no reviews, a whole lot of nothing. They also seem to brandish an ACCA and AAT logo on their site, but i can find no record of them being registered with the respective bodies.
A bit more digging shows the company name IAH Services Ltd. Can't find a great deal on them either, other than the Co House info.
So whats going on here? Anyone heard of them? Anyone care to explain this "Goverment Scheme" they speak of? Or am i correct to think that this is an absolutely steaming pile of BS that my client has eaten up?
Thanks for your input.