CTM97530 - CTSA: group payment
arrangements: removal by agreement
Clause 15 of the group payment arrangement contract
The nominated company can remove a participating company from
the arrangement at any time, by agreement with the group payment
team.
The removal has effect for accounting periods of the
departing company, in respect of which the first instalment:
- falls due after the date of the agreement
to remove,
- would fall due were the company a large
company.
Thus:
- if a departing company has two accounting
periods within the group payment period,
- the first instalment date had passed for
one but not for the other,
its liability for the first remains within the group payment
arrangement.
Example
- ZZ group has had a group accounting arrangement
since its first CTSA accounting period, the year to 31.12.99.
- The participating companies are Company A, Company
B and Company C.
- Their relevant accounting periods are identical to
the group payment periods (the calendar year) throughout.
- Company C is to change the nature of its
activities during 2003 and the group wishes to remove it from the
group payment arrangement.
- Company C can only be removed for the 2003 group
payment period if the agreement to remove it is made by 14 July
2003.
- If the agreement is made later than that (but
before 14 July 2004) Company C remains part of the group payment
arrangement for 2003 and comes out for 2004 onwards.
