COM96060 - Payments: group payment arrangements: payments

As a customer service a payment reminder and payslip (form CT608) is issued to the Nominated Company (Word 28KB) in respect of the Group Payment Arrangement (GPA) one to two months before each anticipated instalment falls due. No payment reminders are sent to the other participating companies (Word 28KB). It is up to the Nominated Company to determine how much and when to pay. The Nominated Company can view its payments and details of each Group Payment Period (Word 27KB) (GPP) for which it is the Nominated Company, through the internet if it registers with HMRC to use this service.

The issue of payment applications is inhibited on participating company records and no recovery action is taken before the GPP is cleared. Once the nominated company’s payments have been apportioned to the participating companies, recovery action will commence against the individual participating companies where appropriate.

Companies whose tax is paid through a Group Payment Arrangement must indicate this by putting an X in Box 96 of the CT600 Company Tax Return form.

The amount payable by the Nominated Company for the GPP will not be affected by changes in the liabilities of the participating companies occurring after the closing date.

So, adjustments made to the liability of an individual participating company, for example, in respect of interest or penalties or as a result of an enquiry into the company’s return, are the responsibility of the individual company, not the Nominated Company.