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HMRC internal manual

Tobacco Products Duty

Accounting procedures: Direct payment of duty

Most traders take advantage of the duty deferment facilities but where the duty is not covered by these arrangements (e.g. where the trader has not sought approval for duty deferment or has exceeded his guarantee limit) payment is required before the products are delivered.

In these cases duty may be paid either:

  • through a warehouse style gross payment account in which a credit balance is maintained sufficient to cover the duty due on all deliveries, even though the duty payable is not finally declared until the TP7 is presented on completion of the day’s deliveries; or
  • in cash on the TP7 before delivery, or against a pro-forma TP7 for the deliveries concerned if the final declaration for the whole day’s deliveries cannot be completed in advance.