covid19 Archives - Marcus Ward Consultancy Ltd

HMRC has announced new measures aimed at easing the tax burden on businesses which import goods.

The Chartered Institute of Taxation (COIT) has received the following information:

Businesses can defer payments due next on 15 April in certain circumstances

Urgent action is required.

Duty deferment account holders

Duty deferment account holders who are experiencing severe financial difficulty as a result of coronavirus 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.

The account holder should contact the Duty Deferment Office using the details below.

Tel: 03000 594243

Email: cdoenquiries@hmrc.gov.uk

Conditions

To use the measure a business will need to demonstrate how coronavirus has impacted its business’s finances and cash flow.

If a business has a Duty Deferment account, it will be able to use its account during the extended payment period agreed, unless it defaults on a subsequent payment in that period. if this happens, HMRC may suspend the account.

The outstanding payment will not affect a business’ duty deferment limit so there will be no need to increase its guarantee to cover the outstanding payment. Interest will not be charged on the outstanding payments provided they are paid in full by the agreed date.

Duty and import VAT payments – non duty deferment account

If a business is a registered importer who pays VAT and Duty at the time of import and is facing severe financial difficulties as a direct result of coronavirus, it can contact HMRC to request an extension to the payment deadline. Again, HMRC will ask for an explanation of how coronavirus has impacted the business’ finances. HMRC will then decide whether to agree an additional time to pay (TTP).

If the request is approved the conditions, including the length of time offered, will depend upon the individual circumstances and may require the holding of a guarantee for the period of the time extension. This facility is not available to non-registered importers.

For further information, please contact the Customs Debt Policy inbox custdebtrr.customspolicy@hmrc.gov.uk

A general guide to the latest on imports here.

Coronavirus measures

In these difficult times things aren’t as they usually are. While there have been no specific government announcements of any VAT reliefs, one issue has arisen.

Refunds

If a venue is required to cancel an event as a result of the government’s advice on coronavirus eg; live performances, seminars, weddings, festivals etc, and the venue suggests that ticket holders might like to donate the money previously paid to charity rather than receive a refund – we can confirm that no VAT is due on any of the transactions.

This is the case in situations where the;

event does not take place
customer is entitled to a full, unfettered refund
refund changes to a genuine voluntary donation

Adjustment

If output tax has been accounted for the next return may be adjusted to credit the tax previously paid. if a refund is made directly to the customer, again, no supply will have been made for VAT purposes and no output tax is due.

Commentary

In these difficult times we appreciate that tax is way down the list of people’s priorities. Many businesses will suffer and many will not survive. If we can help in any way possible, please let us know.

Also, we will report if there are any concessions on VAT payments or similar as soon as we are aware. We recommend that the HMRC guidance on coronavirus should be monitored for the latest news.

Good luck out there and stay safe.

Tag Archives: covid19

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