Group payment arrangements

Produced by Tolley in association with Anton Lane of Edge Tax

Corporation Tax

Guidance

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 D1.1320 for more details.

Definition of group for group payment arrangements

The definition of a group for GPAs is wider than that

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Anton Lane

Managing Partner, Edge Tax LLP , Corporate Tax, OMB, Employment Tax, International Tax, Personal Tax, IHT Trusts and Estates

I started my career helping to sort out tax problems for high net worth individuals, corporations and high profile clients under investigation for suspected serious fraud at Ernst & Young. I specialised in anti avoidance legislation targeting offshore structures and held senior positions with large offshore fiduciary service providers. I established the Edge brand over a decade ago and in 2012 focused the main business on managing tax risks, handling suspected serious fraud cases and assisting clients and advisers with disclosures to HMRC.

Popular Articles

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Personal Tax

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Group payment arrangements

Group payment arrangements