CTSA: group payment arrangements: newly acquired company: example
ZZ group has a group payment period 1 April 2010 to 31 March 2011.
- ZZ group acquires Company A on 1 June 2010.
- 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 2010.
- Company A then aligns its accounting date with that of the group and draws up its next accounts for the period 1 June 2010 to 31 March 2011.
- Company A cannot participate in the group payment arrangement for its accounting period 1 January 2010 to 31 May 2010.
- Company A can participate in the group payment arrangement, by agreement, for its accounting period 1 June 2010 to 31 March 2011, if ZZ group notifies the group payment team:
- before 14 October 2010 (the due date for the first instalment payment due under the arrangement),
- that it wants to bring Company A into the arrangement and the group payment team agree that it may do so.