What is Compupay?
Compupay is an umbrella company, a special type of Limited Company that exists for the sole purpose of employing “self-employed contractors” so that they can carry out short term assignments without the hassle of sorting out their own taxes or invoicing for their work.
While they might act as a self-employed individuals, in the eyes of HMRC contractors become employed by the umbrella company. The umbrella acts just like a normal employer and processes employee payroll through PAYE and NI, paying any amounts due on their behalf and issuing a payslip.
This means that the contractor passes on the responsibility for calculating & paying their taxes to the umbrella for the duration of the contract, often meaning no self assessment is needed at the end of the year.
In addition to removing the burden of self assessments and chasing bad debts, umbrella companies provide professional indemnity & public liability insurance cover to their clients.