Delay your import VAT and customs duty payments

HMRC has announced that they may allow duty deferment account holders and registered importers who are experiencing severe financial difficulties as a result of COVID-19 to delay their import VAT and customs duty payments. Non-registered importers will not benefit from these new measures.

Duty deferment account holders

Those who are struggling to make payment of deferred customs duties and import VAT due on 15 April 2020 should contact HMRC to request approval and make arrangements to enter into an extended period to make full or partial payment.

The account holder should contact the Duty Deferment Office on 03000 594243 or by email at [email protected] or the COVID-19 helpline on 0800 024 1222.  Account holders will be asked to provide an explanation of how COVID-19 has impacted their 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.

Registered Importers

Those who pay cash or an equivalent should contact HMRC to request an extension to the payment deadline at the time the payment is due. They will be asked to provide an explanation of how Covid-19 has impacted on their business finances. HMRC will consider this request and decide whether or not to agree an additional time to pay. The decision will be taken on a case-by-case basis and could be refused.

If the request is approved the conditions, including the length of time offered, will depend upon the importer’s individual circumstances and may require the holding of a guarantee for the period of the time extension. For further information, contact the Customs Debt Policy inbox ([email protected])

If you have any questions about this or need any guidance from our team of experts, please get in touch.