Importers and holders of Duty Deferment accounts can delay payments
HMRC have announced that importers and holders of Duty Deferment accounts can delay or make part payment of their customs duty and import VAT liabilities normally due for payment on 15th day of each month, say leading tax and advisory firm Blick Rothenberg
Alan Pearce, VAT partner as accountancy firm Blick Rothenberg commented: “This is a welcome extension to the measures already announced by HMRC to assist businesses with their VAT payments. We understand that HMRC remained open over the Easter bank holiday for importers to seek prior approvals before 15th April payment deadline”.
He added: “However, unlike the automatic deferral of VAT return liabilities, importers will need to seek HMRC’s approval in order to delay the payment of import duty and VAT.
Alan said “Duty Deferment account holders will be able to continue using their accounts during any approved deferral period without fear of their account being suspended or their bank guarantees being called upon in the event of non-payment. However, this is subject to there being no further unapproved defaults. “
He added: “Therefore, communicating with HMRC and agreeing a payment plan will be key. Where HMRC agree to an extended payment period, interest will not be charged on the deferred payments provided these are paid in full by the agreed date”.
