Companies which regularly import goods from outside the EU may have an existing deferral arrangement in place with HMRC to avoid having to pay import VAT before delivery of the goods.
This payment of import VAT (and duty, if applicable) is outside of the normal VAT return filing process and so is not covered by the general VAT deferral announced by HMRC a few weeks ago.
However, we have been informed that, if the company has a deferred payment of import VAT/duty falling due and has been adversely impacted by the Covid-19 crisis, it is possible to secure an additional deferral by contacting HMRC and negotiating extra time to pay.
To do this, the account holder needs to contact the duty deferment office on 03000 594243 or by email cdoenquiries@hmrc.gov.uk or the COVID-19 helpline on 0800 024 1222. This needs to be done as soon as possible because the payments under the normal deferral scheme are due on 15th of the month following, so any payments relating to deferred duty from March would be due on 15 April.
Other registered importers who do not have an existing deferral facility in place 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 additional time to pay.
If you have any questions about these facilities, please get in touch with us.