HMRC has announced that the payment of import VAT and duties due on Wednesday 15 April 2020 can, subject to a number of conditions, be delayed.
The next payment under the duty deferment process is due on 15 April 2020. Account holders who are experiencing severe financial difficulty due to COVID-19 and who are unable to make payment of deferred customs duties and import VAT by this date can contact HMRC for approval to enter into an extended period to make full or partial payment, without having their guarantee called upon or their deferment account suspended. The account holder should contact the Duty Deferment Office by:
– Telephone: 03000 594243
– Email: cdoenquiries@hmrc.gov.uk
– Or telephone the COVID-19 helpline: 0800 024 1222
It will be necessary to provide an explanation of how COVID-19 has impacted the business finances and cash flow.
Duty Deferment account holders will be able to use their accounts during the extended payment period agreed unless they default on a subsequent payment in that period, in which case HMRC may consider suspending their account. The outstanding payment will not affect their duty deferment limit so they will not need to increase their guarantee to cover the outstanding payment. Where HMRC agree to an extended payment period, interest will not be charged on the outstanding payments provided they are paid in full by the agreed date.
This will be welcome news for many importers but, given the short time until the payments will be taken, it is important that action is taken immediately.
You should:
– Have ready and provide evidence to prove the financial difficulty that making the payments would cause
– Agree a date for the outstanding amount to be repaid, hence consider that in advance of the call
– Given that this measure is imminent, it is not clear if there is sufficient time for any scheduled payments to be stopped so you should discuss and agree this with HMRC
– Follow up any agreed actions in an email to the email addresses above
If you would like any further information, please contact a member of the PM+M team on 01254 679131.
This information is correct as of 14 April 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.
