Unlike the automatic deferral of VAT return liabilities, importers will need to seek HMRC’s approval in order to delay the payment of import duty and VAT.
Duty deferment account holders will be able to continue using their accounts during any approved deferral period without fear of their account being suspended or their bank guarantees being called upon in the event of non-payment. However, this is subject to there being no further unapproved defaults.
Therefore, communicating with HMRC and agreeing a payment plan will be key. Where HMRC agree to an extended payment period, interest will not be charged on the deferred payments provided these are paid in full by the agreed date.
If you would like to discuss any of the above or have other queries about how you can make the right decisions for the future of your business and your income, please contact your usual Blick Rothenberg contact or Alan Pearce.
You can also visit our Coronavirus – Practical Guidance for businesses today Hub for our latest updates and insights.