Customs + Import VAT: HMRC open approval process for extended payment terms

 

Request HMRC to extend payment period for customs/import VAT duty on 15 May

HMRC have opened an approval process for businesses who are experiencing severe financial difficulties as a result of COVID-19 and are unable to make payment of deferred customs duties and import VAT due on 15 May using their Duty Deferment Account. If your business falls in this category you can contact HMRC to request approval for an extended payment period. Either for making full or partial payment without having your guarantee called upon or your account suspended.

Businesses will be asked to provide an explanation of how COVID-19 has affected their business financially. If a payment extension was agreed for their April 2020 payment, the businesses will be asked to confirm that their financial situation has not changed.

Businesses who had a payment extension agreed for their April 2020 payment should email the Central Deferment Office at cdoenquiries@hmrc.gov.uk which will confirm that another payment extension is being requested for the May 2020 payment due to COVID-19 and should also indicate that their financial situation has not changed or has even worsened.

All other requests can be made by contacting the Central Deferment Office at the email address above, or by phoning 03000 594243 or the COVID-19 helpline on 0800 024 1222.

Businesses will be able to use their duty deferment 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.

Separate arrangements are available for deferred excise payments. Businesses unable to pay excise duty owed to HMRC due to COVID-19 should contact the COVID-19 helpline to on 0800 024 1222 discuss an enhanced Time to Pay arrangement.

For more information please contact Naveen Sahney, VAT + Custom Duties Advisor nsahney@garbutt-elliott.co.uk.