Rather than paying customs duty and import VAT to HMRC each time a shipment arrives into the UK from the EU, the importer can opt to open a deferment account. Generally this is a much faster and more efficient method of paying the amounts due to HMRC.
One of the downsides of opening a deferment account is the requirement to provide a guarantee (usually provided by the bank), which you will have to pay for.
However, it is possible to apply for a guarantee waiver.
Applying for a guarantee waiver of over £10,000 per month
To qualify for a guarantee waiver for an amount over £10,000, you need to have positive net assets greater than the value of the waiver you are applying for at the date of your application and at your most recent balance sheet date.
If your positive net assets (excluding goodwill) are less than the value of the waiver applied for but you meet the other approval conditions, you can:
- provide a partial guarantee to cover the shortfall
- accept a reduced deferral limit
Applying for a guarantee waiver of up to £10,000 per month
If you are applying for a guarantee waiver up to £10,000 per month you will need to provide additional information about your financial standing using the PFS1 form if either of these circumstances apply:
- you do not file accounts at Companies House
- you file consolidated accounts at Companies House
How to apply
You can do this by uploading a completed form and supporting documents with your duty deferment application.