HMRC have announced that businesses who have a duty deferment account and who are in severe financial difficulty as a result of Covid-19 can apply to obtain an extension to the due date for payments which are due on 15 April 2020. It will be necessary to prove that Covid-19 has significantly impacted the business and provide cash flows to prove the impact. This scheme is therefore different from the deferral of payments for VAT returns which is open to everyone and not subject to an application.
If a business wishes to apply for this deferral, the account holder should contact:
- The Duty Deferment Office 03000 594243 or by email firstname.lastname@example.org; or
- The COVID-19 helpline on 0800 024 1222.
The duty deferment account can continue to be used even though payment has not been made as long as the conditions agreed with HMRC continue to be met. Furthermore, the amount that is deferred in agreement with HMRC will not impact the overall limit of the deferment account so there will be no need to increase the guarantee. In addition, interest will not be charged.
It may also be possible to obtain a payment deferral for imports if a business does not have a duty deferment account with HMRC. HMRC should be contacted on the same numbers as above.
The length of the deferral under either of the above schemes will be dependent on the individual circumstances of the business.
Please contact us if you would like to discuss further.