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.