COM96070 - Payments: group payment arrangements: repayments

The Nominated Company (Word 28KB) can claim a repayment if it believes that it has paid too much. It can do this if it has reason to believe that, due to a change in circumstances

• Its liability under the Group Payment Arrangement (GPA) in respect of a Group Payment Period (GPP) (Word 27KB) is likely to be less than previously calculated

And

• The amounts which it has paid exceeds the amounts due and payable under the arrangement at that point in time

This might be the case where the forecast of profits at group level has fallen or where a particularly profitable company has been sold out of the group during the GPP. Claims for repayment of money paid by a Nominated Company under a GPA should be referred to the Group Payment Team (Word 28KB).

The Nominated Company should give notice in writing to the Group Payment Team before the closing date, claiming repayment and explaining the grounds for the claim. It must also specify which payments, or parts thereof, it wishes to have repaid. Interest will not be added to any repayment at this point, but will be payable after the closing date.

There is no obligation to repay on a claim, but the Group Payment Team will do so unless they are dissatisfied with the grounds for the claim or conclude that a smaller repayment is justified. The repayment claimed will be reallocated to the Nominated Company's own COTAX record and repaid to the Nominated Company from there to ensure that any interest consequences of the repayment are accounted for when the GPP is cleared. The Group Payment Team must specify which payments, or part payments, are being repaid as this affects the calculation of interest later.

Automatic repayments and reallocations are inhibited on APs where the Group Payment Arrangement Indicator is P.

The Nominated Company can claim repayment of any remaining overpaid balance shown on the closure notice up to the earlier of

• 30 days from the date that notice is given

Or

• The date the Nominated Company gives notice of the way it would like the amount paid to be apportioned between the participating companies (Word 28KB)

Otherwise, the overpayment will form part of the amount to be apportioned or reapportioned at the closing date.