Delaying import duty payments as a result of Covid-19

HMRC announced over the Easter bank holiday weekend that the payment of duty and import VAT through duty deferment accounts on 15 April can subject to a financial hardship test be delayed. Non-registered importers will not be eligible.

RSM partner Philip Munn explained that businesses bringing goods into the UK from outside the EU operate deferment accounts. These allow payment of import VAT and duty to be delayed for 15 days after the month in which the goods are brought into the country. HMRC requires such accounts to be supported by a bank or insurance company guarantee.

However payments to settle deferment accounts are not covered by the general deferral of VAT payments until 30 June so importers have been concerned that failure to abide by the terms of the account could result in the suspension of their account and that HMRC may call on its guarantee...