HMRC offer Covid-19 relief

In good news for stretched importers, HMRC is offering payment relief for duty and VAT payments, but the deadline for deferment account holders is tomorrow!

Duty deferment account holderswho are experiencing severe financial difficulty as a result of Covid-19 and who are unable to make payment of deferred customs duties and import VAT due on 15 April 2020 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.

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.

The outstanding payment will not affect their duty deferment limit so they will not need to increase their guarantee to cover the outstanding payment and interest will not be charged on the outstanding payments provided they are paid in full by the agreed date.

Contact the Duty Deferment Office 03000 594243 or email cdoenquiries@hmrc.gov.uk 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.

Registered Importers who pay cash or an equivalent and are facing severe financial difficulties as a direct result of Covid-19 can 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, please contact custdebtrr.customspolicy@hmrc.gov.uk