³ÉÈËÓ°Òô

Group payment arrangements (GPAs) allow companies within the same group to make payments of corporation tax jointly. The company that makes all the payments of corporation tax on behalf of the group is called the ‘nominated company’ and effectively acts as the group ‘bank’. All other members are called ‘participating companies’.

Entering into these arrangements is optional but the advantage is that only one payment of corporation tax needs to be made on behalf of all the group members. This means that the administration is much more straightforward, particularly in the context of quarterly instalment payments of corporation tax. Such an arrangement also avoids the complications of having to deal with offsetting group members’ corporation tax overpayments against other members’ underpayments. Finally, entering into a group payment arrangement can help to minimise interest costs arising on late payment of tax, assuming the nominated company makes payments on time.

See Simon’s Taxes D1.1321 for more details.