CTM97470 - CTSA: group payment arrangements: newly acquired company: example

ZZ group has a group payment period 1 April 2022 to 31 March 2023.

• ZZ group acquires Company A on 1 June 2022.
• Company A previously drew up its accounts to 31 December annually.
• Company A draws up accounts to the day before the take-over, 31 May 2022.
• Company A then aligns its accounting date with that of the group and draws up its next accounts for the period 1 June 2022 to 31 March 2023.
• Company A cannot participate in the group payment arrangement for its accounting period 1 January 2022 to 31 May 2022.
• Company A can participate in the group payment arrangement, by agreement, for its accounting period 1 June 2022 to 31 March 2023, if ZZ group notifies the group payment team:
  • before 14 October 2022 (the due date for the first instalment payment due under the arrangement as the group has large companies for instalment purposes - note that if any companies covered by the arrangment are very large then the first payment due under the arrangement would be due on 14 June 2022),
  • that it wants to bring Company A into the arrangement and the group payment team agree that it may do so