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HMRC extends payment period for customs and import duty for third month in a row – apply now

3 June, 2020
Posted by: William Barns-Graham
Trade News

This article was published before we became the Chartered Institute of Export & International Trade on 10 July 2024, and this is reflected in references to our old brand and name. For more information about us becoming Chartered, visit our dedicated webpage on the change here.

HMRC will extend the payment period for customs and import duty for the third month in a row in recognition of the ongoing difficulties businesses are facing due to the pandemic.

As with the April and May extensions, businesses will need to actively apply for the payment deferment and show they are experiencing financial difficulties as a result of the lockdown restrictions in place.

Kevin Shakespeare, director of stakeholder engagement for the IOE&IT, told the Daily Update (3 June): “Deferment extensions continue to be an important boost for businesses importing goods and who are part of supply chain operations.”

Contact HMRC

Companies that are unable to pay deferred customs duties and import VAT due on 15 June should contact HMRC to seek an extension for making full or partial payment.

Duty Deferment Account holders will not require a bank guarantee or to have their account suspended in order to request the extension.

Those who do not currently hold a Duty Deferment Account will need a bank guarantee to apply for one.

More information on how to apply can be found here.

HMRC has provided FAQs below about the extension. You can view the answers here.

Frequently Asked Questions

  • How can duty deferment users request a payment extension?
  • Can duty deferment users continue to use their duty deferment accounts while payment remains outstanding and if so, will they need to increase their guarantee?     
  • Will HMRC charge interest on these outstanding payments?
  • Can duty deferment users request a payment extension if they think it will help ease cash-flow concerns while the COVID-19 measures remain in place?
  • How do you assess whether duty deferment users are suffering genuine financial difficulty as a result of COVID?
  • Will the payment deadline extension apply to payments due on 15 June?
  • Do these arrangements apply to payments of deferred excise duty?
  • What about businesses who pay their customs duty/import VAT through a duty deferment account held by their customs agent?

A full range of business support measures have been made available to UK businesses during coronavirus (COVID-19).

More information is available here.