Payments: group payment arrangements: repayments
The Nominated Company can claim a repayment if it believes it has paid too much. It can do this if, due to a change in circumstances
- Its liability under the Group Payment Arrangement (GPA) in respect of a Group Payment Period (GPP) is likely to be less than previously calculated
- The amount which it has paid exceeds the amount due and payable under the arrangement at that point in time
This might be the case where the forecast of profits at group level has fallen or where a particularly profitable company has been sold out of the group during the GPP. You should refer claims for a repayment of money paid under a GPA to the Group Payment Team.
The Nominated Company should give notice in writing to the Group Payment Team before the closing date, claiming repayment and explaining the grounds for the claim. It must also specify which payments, or parts of payments, it wishes to have repaid. Interest is not added to any repayment at this point, but will be payable after the closing date of the GPP.
There is no obligation to repay on a claim, but the Group Payment Team will unless they are dissatisfied with the grounds for the claim or conclude that a smaller repayment is justified. The repayment claimed will be reallocated to the Nominated Company’s own COTAX record and repaid to the Nominated Company. The Group Payment Team specifies which payments or part payments are being repaid, to ensure that interest is correctly calculated on the Nominated Company’s record when the GPP is cleared.
Automatic repayments and reallocations are inhibited on APs where the Group Payment Arrangement Indicator is P.
The Nominated Company can claim repayment of any remaining overpaid balance shown on the closure notice up to the earlier of
- 30 days from the date that notice is given
- The date the Nominated Company gives notice of the way it would like the amount paid to be apportioned between the participating companies
Otherwise, the overpayment will form part of the amount to be apportioned or reapportioned at the closing date.