»Ê¹ÚÌåÓýapp

Clause 15 of the group payment arrangement contract

»Ê¹ÚÌåÓýapp nominated company can remove a participating company from the arrangement at any time, by agreement with the group payment team.

»Ê¹ÚÌåÓýapp removal has effect for accounting periods of the departing company, in respect of which the first instalment:

• falls due after the date of the agreement to remove,

or

• would fall due were the company a large company.

Thus:

• if a departing company has two accounting periods within the group payment period,

and

• the first instalment date had passed for one but not for the other,

its liability for the first remains within the group payment arrangement.

Example

• ZZ group has had a group payment arrangement since its first CTSA accounting period, the year to 31.12.09.
• »Ê¹ÚÌåÓýapp participating companies are Company A, Company B and Company C.
• »Ê¹ÚÌåÓýappir relevant accounting periods are identical to the group payment periods (the calendar year) throughout.
• Company C is to change the nature of its activities during 2012 and the group wishes to remove it from the group payment arrangement.
• Company C can only be removed for the 2012 group payment period if the agreement to remove it is made by 14 July 2012.
• If the agreement is made later than that (but before 14 July 2013) Company C remains part of the group payment arrangement for 2012 and comes out for 2013 onwards.