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HMRC internal manual

Holding and Movements Export Shops

From
HM Revenue & Customs
Updated
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Special Payment Scheme: How the scheme works

  1. Example of how the Special Payment Scheme works:

The monthly advance payment is set as £1000 Actual duty liability is £1500 Duty payment calculated as: (£1500 - £1000) + £1000 = £1500 (the same as the actual duty liability)

The monthly advance payment is set as £1000 Actual duty liability is £500 Duty paymentis calculated as (£500 - £1000)+ £1000 = £500 (the same as the actual duty liability)

  1. Example of the Special Payment scheme when the monthly advance payment amount changes

The Advance payment is currently £1000 but is to be changed to £1500 to cover the accounting period beginning January and onwards.

In the December accounting period the amounts are:

  • actual duty liability = £1250;
  • advance payment (paid in November to cover December) = £1000; and
  • advance payment for January = £1500.
  • Duty to be paid for the December accounting period calculated as:

(£1250 - £1000) + £1500 = £1750

Where a new monthly advance payment is agreed ensure that the warehouse keeper is aware that this will be reflected in the accounting period in which the new advance payment amount is first paid, and not the accounting period the new amount covers.