Applying for an exclusion from grouping for payroll tax
If you carry on your business independently of and not in connection with the other members of your payroll tax group, you can apply to have your business excluded from the group. You will need to supply evidence to support your application.
The exclusion does not apply to related bodies corporate.
Granting an exclusion
Our decision to exclude a business from the group is based on the facts of each case, including:
- ownership and control of the business and other members of the group
- the nature of the business
- other relevant matters.
A high level of common ownership (common control or entitlement) is a major factor when deciding if businesses are carrying on independently and are not connected. As the level of common ownership, control or entitlement increases above the minimum threshold, its importance also increases, to the point where it may outweigh all other factors when we consider granting an exclusion order.
Before applying for an exclusion, read the public ruling that explains how the Commissioner of State Revenue will exercise discretion to exclude members from a group (PTA031).
To help us determine if you should be excluded from the group, you will need to submit an application for an exclusion from grouping (Form PT1) to us, including the supporting evidence required by the form. You may also be required to include evidence from third parties; for example, declarations from employees, managers, accountants, customers and suppliers.
The supporting evidence must:
- relate to the whole period for which you are requesting an exclusion order
- show that the evidence applied for the whole period.
For us to consider third party declarations:
- the person making the declaration must have been in a position to witness the evidence declared during the relevant period
- the employer must confirm in writing that we will have access to the third parties so we can check any information.
Send your application and supporting evidence to firstname.lastname@example.org.
If you are already grouped, the exclusion can still apply to you through a retrospective order.
We will only grant a retrospective order if you can prove that:
- the order should be treated retrospectively (i.e. affect the past)
- all relevant matters that were considered when granting the order have not changed during the period for which you are seeking the order.
The order will take effect from the date we are satisfied the evidence or circumstances justifying the granting of the order came into existence.
Refund of overpaid payroll tax
We will reassess your payroll tax liability if the amount of your liability would change as a result of you being excluded from the group.
You may get a refund if you:
- have paid payroll tax on the entire group's wages
- apply for a reassessment within 5 years of the assessment notice for the original assessment being given.