Normally, the group payment team only agree to set up a group
payment arrangement if the group sends in the signed arrangement
contract at least two months before the first payment due under the
This is to make sure that there is sufficient time:
A director of the nominated company must sign the contract. This
is a stricter requirement than applies to most forms, including the
That is because the document, once approved and signed by the group payment team on behalf of the Board, constitutes a contract between:
and places obligations on both parties that go beyond the scope
of Taxes Acts.
There must be no scope for argument about whether the company signatory had the authority to commit the nominated company to such a contract.
Where, exceptionally, a director cannot sign the document himself, the signature of an officer of the company may be acceptable. This is only so if the director signs a specific letter accompanying the contract authorising that officer to sign the contract on behalf of the nominated company.
Only companies that are up to date with their filing and payment obligations can take part in a group payment arrangement.
The group payment teams check the COTAX record of every proposed participating company before agreeing to set up a new group payment arrangement. They will ask the Inspector ask for advice about any company which has not:
for its last but one accounting period.
It is important to deal with referrals promptly as tight time limits apply to the setting up of group payment arrangements. You should advise the group payment team to accept the application if:
You should discuss the case with Head Office (This text has been withheld because of exemptions in the Freedom of Information Act 2000)before advising the group payment team to refuse any application.