Immediately following the closing date for each group payment
period (defined at
CTM97500) the group payment team works
out what is due from the nominated company under the arrangement.
It takes account of any amendments made to the SA of the
participating companies at any time up to the closing date.
Any adjustments made to the SA of participating companies after the closing date, including any reflecting amendments to the return before that date, are dealt with on an individual company basis.
The group payment team issues a notice of closure to the nominated company setting out the payments made and the liabilities of each participating company as at the date of closure. The notice invites the nominated company to:
Where the nominated company does not pay the outstanding
balance, the shortfall is likely to be allocated to a participating
company whose liability is expected to decrease by the amount of
If that is not the case, or:
we can over-ride the nominated company's allocation of the
We will do this, for example, if the underpaid company was insolvent. This provision enables us to reallocate the underpayment to a solvent participating company and enforce payment against it.
The group payment team's job in relation to a particular group payment period is essentially over once they have carried out the nominated company's wishes regarding the apportionment of payments. It is, therefore, the co-ordinating Inspector who may need to use the provision. However, Inspectors should seek advice from Business Services
The nominated company can allocate any surplus to one or more participating companies, or require its repayment.
The group payment team makes:
on the computer record.
COTAX then calculates any:
interest in the normal way on the individual company's record.
This is calculated on the basis that the payments apportioned to it were:
Any amendment to the liability of the company for the relevant
accounting period thereafter is handled for all purposes as if the
company had never been within a group payment arrangement.
If the nominated company fails to make this apportionment, the Revenue has the power to make the apportionment, by notice in writing. The group payment team will issue an apportionment notice (CT631) and if there is no response to the notice within 30 days the proposed apportionment will take place.
See the On-line Company Tax Manual (COM) in the Pursuit business area for procedural guidance on handling such cases.