CTM97470 - CTSA: group payment
arrangements: newly acquired company: example
ZZ group has a group payment period 1 April 2000 to 31 March
2001.
- ZZ group acquires Company A on 1 June 2000.
- 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 2000.
- Company A then aligns its accounting date with
that of the group and draws up its next accounts for the period 1
June 2000 to 31 March 2001.
- Company A cannot participate in the group payment
arrangement for its accounting period 1 January 2000 to 31 May
2000.
- Company A can participate in the group payment
arrangement, by agreement, for its accounting period 1 June 2000 to
31 March 2001, if:
- before 14 October 2000 (the due date for
the first instalment payment due under the arrangement),
- ZZ group notifies the group payment team
that it wants to bring Company A into the arrangement and they
agree that it may do so.
