25 May 2021

Problematic shipping conditions to persist ‘for at least next three months’

As you are aware there have been huge problems with international shipping over the last nine months especially full container load (FCL) shipments from the Far East, says KRL Shipping.

This has been caused by a number of factors. Due to the Covid-19 pandemic, some capacity was taken out of service and demand, especially for shipping the likes of PPE, was a lot higher than forecast at the beginning of the pandemic.

As the UK hit peak season last year and for the majority of the fourth quarter of 2021, some of the major UK ports operating under Covid restrictions suffered a lot of congestion issues. This resulted in vessels not making their intended berthing slots, vessels being re-directed to European ports and offloading containers at these ports. Vessels were only offloading part of their UK cargo and were then moving on to European ports with the UK cargo having to be transhipped back at a later date.

This caused long delays and increased transit times on certain routes. At certain times there were not enough vehicle booking system (VBS) spots for hauliers to obtain in order to collect the containers and not enough capacity in the container haulage business to cope with the containers coming in at particular times.

At certain points some of the major ports were so congested with containers that certain lines had to redirect empty containers to other ports such as Portsmouth and Thamesport because of the lack of space at the port of arrivals.

The worldwide shipping industry runs on a very tight cycle, which is constantly moving. It works well when shipping is moving constantly but clogging appeared in this cycle in 2020 and the cycle got out of sync. This had led to empty containers being situated in the wrong corners of the world, bottle necks of vessels at certain ports (Long Beach) around the world and a complete lack of equipment in certain areas.

These factors led to huge increases in freight rates with prices more than 500% higher in some cases over the last six months compared to 2019 averages. On top of this consumer spending in both the US and in the UK has remained robust and a large proportion of these products are shipped by FCL from the Far East.

The current market situation

The current market situation is still hugely problematic. The Suez situation has only made matters more challenging. On the positive side the UK port situation has improved and congestion is not such a factor. There are fewer vessels being diverted and the situation with vessels cutting and running to European ports has dramatically declined. There are still schedule delays on a lot of services but things have improved in this area. Current haulage capacity is tending to cope with demand.

There is still a shortage of equipment throughout the Far East and from other areas of the world such as the US and disruption to services. 20GP containers are in particularly short supply across areas of the Far East and demand is currently outweighing supply for all containers.

Major bottle necks of vessels still persist at certain ports, which again delays equipment being returned to the likes of China which has a spiralling effect. Rates did begin to drop a little after Chinese New Year but have begun to creep back up again in the second half of May and are close to the highs we have seen over the last nine months. The Ever Given situation in the Suez had a negative impact on capacity and equipment.

Guidance

It is very difficult to predict with certainty what the market conditions are going to be over the next three months but KRL does predict that these hugely problematic market conditions are going to persist over the next three months. Consumer spending both in Europe and the US remains high and the lack of equipment throughout the Far East is unlikely to improve in the short term.

KRL’s opinion is that demand will continue to outweigh supply and capacity which will lead to continued rate pressures. All being well, Covid-19 restrictions at the UK ports will continue to ease which may help the UK port situation. KRL does anticipate continued delays in some schedules. Its advice would be to try to make bookings as early as possible and to factor in these factors to lead and transit times. It does anticipate rates remaining at these elevated levels for some time to come due to the various factors listed above.

KRL would always be available for any advice and guidance to any members. It operates its own weekly less than container load (LCL) console shipments out of China and Hong Kong and offers a full range of shipping services to and from all areas of the world and complete UK nationwide EU brokerage services.

Please feel free to contact KRL at any time for any information and they will do their best to help and assist you.

18 May 2021

More UK businesses allowed to reopen as Covid-19 easing plan continues

Indoor hospitality, sport and leisure, entertainment and visitor attractions, performance arts, events and all remaining holiday accommodation have been allowed to reopen in England under Step 3 of its Covid-19 easing plan.

Indoor areas at attractions such as adventure playgrounds, play areas, trampling and water parks, theme parks, zoos, safari parks and aquariums are allowed to reopen.

Wales is now at alert level 2, which means all indoor hospitality has reopened as well as indoor entertainment and visitor attractions.

Most of Scotland is at protection level 2, while many of its islands are at level 1. However, Moray and Glasgow city councils are still at level 3. All retail shops remain open.

Northern Ireland’s current regulations will be reviewed on 10 June. All retail remains open but hospitality services are only allowed to operate outdoors.

29 May 2020

Government announces changes to furlough scheme – 29 May 2020

From 1 July, businesses will be given the flexibility to bring furloughed employees back part-time. Individual firms will be able to decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From August, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.

The scheme updates mean that the following will apply for the period people are furloughed:

• June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
• August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed. At the end of October the scheme will close.
• To enable the introduction of part-time furloughing, and support those already furloughed back to work, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.
• From 1 July, employers will be able to agree any working arrangements with previously furloughed employees.
• When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week, for grants to be calculated accurately across working patterns.

Self-employment income support scheme extended

• Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
• Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
• The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by Covid-19 in this later phase. Further guidance on the second grant will be published on Friday 12 June.

Factsheet for SEISS and CJRS schemes (PDF, 126KB, 5 pages)

Temporary relaxation of the enforcement of the driver’s hours rules

The EU drivers’ hours relaxations ended on 31 May 2020. The GB drivers’ hours relaxation applies until Saturday 14 June 2020. Anyone driving the GB drivers’ hours rules and undertaking carriage if goods by road can use the relaxations where necessary. The relaxations are not limited to specific sectors or journeys. Find out more here.

28 May 2020

Government launches NHS test and trace system – 28 May 2020

Anyone who tests positive for coronavirus in England will now be contacted by NHS Test and Trace and will need to share information about their recent interactions. This could include household members, people with whom they have been in direct contact, or within 2 metres for more than 15 minutes.

People identified as having been in close contact with someone who has a positive test must stay at home for 14 days, even if they do not have symptoms, to stop unknowingly spreading the virus.

If those in isolation develop symptoms, they can book a test at nhs.uk/coronavirus or by calling 119. If they test positive, they must continue to stay at home for 7 days or until their symptoms have passed. If they test negative, they must complete the 14-day isolation period. You can find further guidance here.

There is specific guidance on the NHS test and trace service for employers, business, workers and the self-employed which can be found here.

Test and Protect in Scotland has also been launched today. Test, Trace, Protect in Wales will launch on 1 June 2020 and contact tracing in Northern Ireland is currently up and running.

Six people can meet outside under new measures

Groups of up to six people will be able to meet outdoors in England from Monday 1 June, including in gardens and other private outdoor spaces, provided strict social distancing guidelines are followed.

Primary schools will welcome back children in Reception, Year 1 and Year 6 on 1 June, and nurseries and other early years settings will be reopened. On 15 June, secondary schools, sixth forms and colleges will begin to provide some face-to-face contact time for Year 10 and 12 and the equivalent groups in further education. This will help students prepare for exams next year, and we expect there to be around a quarter of these secondary students in at any point.

Furloughed drivers and recording mobile working time

The government has written a guide for operators and furloughed drivers on EU mobile working time rules and EU and AETR drivers’ hours and tachograph rules. It will help you understand how:

• to record your activities when furloughed, including when undertaking other work, either on your tachograph or by manual record if a tachograph cannot be used
• being furloughed interacts with the working time rules that apply to mobile workers
• to meet your obligations relating to driver card and tachograph vehicle unit data during coronavirus (COVID-19) related disruption

26 May 2020

Shops to reopen on 15 June, subject to conditions – 26 May 2020

Thousands of high street shops, department stores and shopping centres across England are set to reopen next month once they are Covid-19 secure and can show customers will be kept safe.

Outdoor markets and car showrooms will be able to reopen from next Monday, 1 June, as soon as they are able to meet the Covid-19 secure guidelines to protect shoppers and workers. All other non-essential retail including shops selling toys, clothes, shoes, furniture, books, and electronics, plus tailors, auction houses, photography studios and indoor markets, will be expected to be able to reopen from Monday 15 June if the government’s five tests are met and they follow the Covid-19 secure guidelines, giving them three weeks to prepare.

Businesses will only be able to open from these dates once they have completed a risk assessment, in consultation with trade union representatives or workers, and are confident they are managing the risks. They must have taken the necessary steps to become Covid-19 secure in line with the current Health and Safety legislation.

Measures that shops should consider include:

• Placing a poster in their windows to demonstrate awareness of the guidance and commitment to safety measures
• Storing returned items for 72 hours before putting them back out on the shop floor
• Placing protective coverings on large items touched by the public
• Frequent cleaning of objects and surfaces that are touched regularly, including self-checkouts, trolleys and coffee machines

Updated guidance for the retail sector has been published alongside this announcement, detailing the measures retailers should take to meet the necessary social distancing and hygiene standards. You can find the guidance here.

Join a free webinar, hosted by the Department of Business, Energy and Industrial Strategy (BEIS), to find out more about how to make your retail workplace Covid-secure.

• Thursday 28 May, 11am: Shops and branches – Guidance for people who run shops, branches, stores or similar environments.

Details of other free webinars, hosted by BEIS are available on how to make your workplace Covid-secure. The webinars cover a range of different types of workplace settings which are allowed to open in England. The BTHA has also produced warehouse and office safety guidelines for members only.

Coronavirus sick pay scheme opens

The Coronavirus Statutory Sick Pay Rebate Scheme is now open for applications. The scheme allows small and medium sized employers, with fewer than 250 members of staff, to apply to recover the costs of paying coronavirus-related Statutory Sick Pay for two weeks – worth nearly £200 per employee. Money will be received within six working days.

• The current rate of SSP is £95.85 per week. Employers can choose to go further and pay more than the statutory minimum. This is known as occupational or contractual sick pay.
• Where an employer pays more than the current rate of SSP in sick pay, they will only be able to reclaim the SSP rate.

The scheme covers all types of employment contracts, including:

• full-time employees
• part-time employees
• employees on agency contracts
• employees on flexible or zero-hour contracts
• other SSP eligibility criteria apply
• tax agents can make claims on behalf of their employers
• Connected companies and charities can also use the scheme if their total combined number of PAYE employees are fewer than 250 on or before 28 February 2020. Employees do not have to provide a doctor’s fit note in order for their employer to make a claim under the scheme make a claim.
• The repayment will cover up to two weeks of SSP from either 13 March 2020, if an employee had coronavirus, symptoms or is self isolating because someone they live with has symptoms, or from 16 April 2020 if an employee was shielding because of coronavirus.
• Employers can furlough their employees who have been advised to shield in line with public health guidance and are unable to work from home, under the Coronavirus Job Retention Scheme. Once furloughed, the employee should no longer receive SSP and would be classified as a furloughed employee. Where an employee has been notified to shield and has not been furloughed, the rebate will compensate up to 2 weeks of SSP from 16 April.

21 May 2020

Government introduces insolvency bill in parliament – 21 May 2020

The government has introduced the Corporate Governance and Insolvency Bill in Parliament, which will put in place a series of measures to amend insolvency and company law to support business to address the challenges resulting from the impact of coronavirus (Covid-19). The Bill consists of 6 insolvency measures and 2 corporate governance measures.

The corporate governance measures will introduce temporary easements and flexibility to businesses where they are coping with reduced resources and restrictions.

The Bill will do this through:

• introducing a new moratorium to give companies breathing space from their creditors while they seek a rescue
• prohibit termination clauses that engage on insolvency, preventing suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process
• introducing a new restructuring plan that will bind creditors to it
• enabling the insolvency regime to flex to meet the demands of the emergency
• temporarily removing the threat of personal liability for wrongful trading from directors who try to keep their companies afloat through the emergency
• temporarily prohibiting creditors from filing statutory demands and winding up petitions for coronavirus related debts
• temporarily easing burdens on businesses by enabling them to hold closed Annual General Meetings (AGMs), conduct business and communicate with members electronically, and by extending filing deadlines
• allowing for the temporary measures to be retrospective so as to be as effective as possible

19 May 2020

Government loans expanded for large firms – 19 May 2020

Businesses will now be able to benefit from larger loans under the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The maximum loan size available under the scheme will be increased from £50 million to £200 million to help ensure those large firms which do not qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) have enough finance to meet cashflow needs during the outbreak. The expanded loans, which have been introduced following discussions with lenders and business groups, will be available from 26 May.

Companies borrowing more than £50m through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan, including a ban on dividend payments and cash bonuses, except where they were previously agreed.

These restrictions will also apply to the Bank of England’s Covid Corporate Financing Facility (CCFF) participants that wish to borrow money beyond 12 months from today. This will ensure that the money is used to keep the company going through the crisis. The Bank of England will also publish a list of companies who have benefitted under CCFF on 4 June.

Coronavirus Statutory Sick Pay Rebate Scheme set to launch

A new online service will be launched on Tuesday 26 May for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees.

The Coronavirus Statutory Sick Pay Rebate Scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.

Employers will be able to make their claims through a new online service from 26 May. This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after 13 March 2020.

Tax agents will also be able to make claims on behalf of employers.

Apply for the coronavirus Future Fund

The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. The fund will be open for applications from Wednesday 20 May 2020.

These convertible loans may be a suitable option for businesses that typically rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.

The Future Fund was developed by the government and is being delivered by the British Business Bank.

Anyone with Coronavirus symptoms can now be tested

The government has announced that anyone with symptoms of coronavirus is now eligible to book a test, ahead of the rollout of the test and trace service. The expansion in testing eligibility comes after it was confirmed that anosmia has been added as a symptom of Covid-19. Anosmia is the loss of or a change in your normal sense of smell, and it can also affect your sense of taste.

This means people should self-isolate immediately if they have:

• a new, continuous cough
• a high temperature, or
• a loss of or change in their normal sense of smell or taste

All members of their household must also self-isolate according to current guidelines, unless the symptomatic individual receives a negative test result.

18 May 2020

Anosmia (loss of smell) added to Covid-19 symptoms – 18 May 2020

From today, all individuals should self-isolate if they develop a new continuous cough or fever or anosmia. Anosmia is the loss of or a change in your normal sense of smell. It can also affect your sense of taste as the two are closely linked.

The government has been monitoring the emerging data and evidence on Covid-19 and, after thorough consideration, we are now confident enough to recommend this new measure.

The individual’s households should also self-isolate for 14 days as per the current guidelines and the individual should stay at home for 7 days, or longer if they still have symptoms other than cough or loss of sense of smell.

14 May 2020

Holiday entitlement and pay during coronavirus – 14 May 2020

This guidance outlines how holiday entitlement and pay operate during the coronavirus pandemic. It is designed to help employers understand their legal obligations, in terms of workers who:

• continue to work
• have been placed on furlough as part of the government’s  Coronavirus Job Retention Scheme (CJRS)

Covid-19 Statutory Sick Pay Rebate Scheme

At Budget 2020 the Chancellor announced details about a new coronavirus Statutory Sick Pay Rebate Scheme. This scheme will allow small and medium sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying Statutory Sick Pay to their employees. HMRC has published online guidance which includes information about who can use the scheme and the records employers must keep.

HMRC is working urgently to set up a system for reimbursement. Details about when the new Statutory Sick Pay Rebate Scheme can be accessed and when employers can make a claim will be announced as soon as possible.

13 May 2020

Government announces Trade Credit Insurance guarantee – 13 May 2020

Businesses with supply chains which rely on Trade Credit Insurance and who are experiencing difficulties maintaining cover due to Coronavirus will get support from the government. The government will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance, ensuring the majority of insurance coverage will be maintained across the market. This will support supply chains as they will be protected if a customer defaults on payment. HMG’s Trade Credit Insurance (TCI) guarantee will cover over £171 billion business activity currently insured and the transactions between around 13000 suppliers and 650,000 buyers. You can find further information on our Trade Credit Insurance FAQs page.

Applications for Self-Employment Income Support Scheme open early

Self-employed people or members of partnerships whose business has been adversely affected by coronavirus will be able to apply for a Self-Employment Income Support Scheme (SEISS) grant, worth 80% of their average monthly trading profits, up to a maximum of £7,500), paid in a single instalment.

Check if you are eligible for the scheme here.

People will be able to make their claim on a specified date between 13-18 May, based on their Unique Tax Reference number. HMRC has assigned eligible self-employed individuals a specific date to apply on and this can be checked on HMRC’s online checker at any time. People will not be able to apply before their claim date but can make a claim after that day.

The claims process is simple, and those eligible will have the money paid into their bank account by 25 May 2020, or within six working days of completing a claim.

Government announces roadmap taskforces

Five new ministerial-led taskforces have been set up to develop plans for how and when closed sectors can reopen safely, following publication of the UK’s roadmap to rebuild Britain. Businesses and shops in indoor environments or with closer contact between people, like pubs, hotels and non-essential retail, will likely have a higher risk of transmission, as is the case with many places of worship.

The five new ministerial taskforces will look at the following sectors:

• pubs and restaurants (Department for Business, Energy and industrial Strategy)
• non-essential retail (including salons) (Department for Business, Energy and industrial Strategy);
• recreation and leisure, including tourism, culture and heritage, libraries, entertainment and sport (Department for Culture, Media and Sport)
• places of worship, including faith, community and public buildings (Ministry for Housing, Communities and Local Government)
• international aviation, reflecting the unique challenges that sector is facing (Department for Transport)

As part of this science-led approach, each taskforce will work across Government and engage with key stakeholders in public health, industry, trade unions and devolved administrations to:

• ensure that COVID-19 secure guidelines are developed in line with the phased approach and public health directions, building on the existing guidance and providing intelligence and sector-specific expert input
• agree and ensure alignment of all relevant sectoral guidance
• provide key sector stakeholders direct access to Ministers to shape the guidance.

12 May 2020

Chancellor extends Coronavirus Job Retention Scheme – 12 May 2020

The Coronavirus Job Retention Scheme will remain open until the end of October. The scheme will continue to apply across all regions and sectors in the UK economy. Furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500.

From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

The scheme will continue in its current form until the end of July. Changes to allow more flexibility will come in from the start of August. More specific details and information around implementation will be made available by the end of this month.

Coronavirus (Covid-19): safer transport guidance for operators – This guide will help businesses, agencies and others understand how to provide safer workplaces and services for themselves, their workers and passengers across all modes of private and public transport. It outlines measures to assess and address the risks of coronavirus in the transport sector across England.

Guidance for passengers on how to travel safely – This guidance provides advice on how passengers should make journeys safely. The advice sets out that if people who cannot work from home and have to travel for work, they should first consider alternatives to public transport. Those driving their own cars have been asked to avoid busy areas. For those who have to use public transport, the guidance recommends:

• Keeping 2 metres apart wherever possible;

• Wearing a face covering if you can;

• Using contactless payment where possible;

• Avoiding rush hour travel where feasible;

• Washing or sanitising your hands as soon as possible before and after travel;

• Following advice from staff and being considerate to others.

All the latest guidance for people using transport or working in the transport sector during the coronavirus outbreak can be found here.

4 May 2020

New Bounce Back loans scheme launches – 4 May 2020

Britain’s small businesses will be able to apply for quick and easy-to-access loans of up to £50,000 from now – with the cash expected to land within days.

• small businesses will be able to apply for quick and easy-to-access loans from today
• businesses will be able to borrow between £2,000 and £50,000 with the cash arriving within days
• loans will be 100% government backed for lenders, and businesses can apply online through a short and simple form

Thousands of small firms and sole traders will be eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak. Small business owners can apply to accredited lenders by filling out a simple online form, with only seven questions. The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans. And any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this new scheme. To apply, see further information about the Bounce Back Loan scheme.

The scheme will be delivered through a network of accredited lenders and will run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Self-employed income support scheme opens

HM Revenue and Customs will begin contacting customers who may be eligible for the government’s Self-Employment Income Support Scheme (SEISS) from now. Those who are eligible will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits), paid in a single instalment. HMRC is also inviting customers, or their agents, to go online and check their eligibility for SEISS.

The claims  service  will open on Wednesday 13 May and is being  delivered  ahead of the original timetable. This  will help millions of self-employed people, covering a wide range of industries and jobs, whose livelihoods have been adversely affected by the coronavirus. The claims process will be very simple,  and those eligible will have the money paid into their bank account  by 25 May, or within  six working days  of completing a claim.  Individuals are eligible if their business has been adversely affected by coronavirus, they traded in the tax year 2019 to 2020, intend to continue trading, and they:

• earn at least half of their income through self-employment
• have trading profits of no more than £50,000 per year
• traded in the tax year 2018 to 2019 and submitted their Self Assessment tax return on or before 23 April 2020 for that year

HMRC is using information that customers have provided in their 2018 to 2019 tax return – and returns for 2016 to 2017 and 2017 to 2018 where needed – to determine their eligibility and is contacting customers who may be eligible via email, text message or letter.

Webinars to support your business

Government departments are hosting a series of free webinars this week to help businesses understand the support available including:

• Multiple dates – Coronavirus Job Retention Scheme – How to make a claim
• Multiple dates – Coronavirus COVID-19 Statutory Sick Pay Rebate Scheme

Keep up to date with all the latest available webinars here.

Deferred duty payments

Duty Deferment Account holders who are experiencing severe financial difficulties as a result of the COVID-19 measures in place, and who are unable to make payment of deferred customs duties and import VAT due on 15 May, can contact HMRC for approval to an arrangement for extended period for making full or partial payment without having their guarantee called upon or their account suspended.

If a duty deferment user is facing severe financial difficulties as a direct result of COVID-19 and is unable to make payment of deferred customs duty and import VAT due on 15 May they should contact HMRC to request an extension.

Duty Deferment users who had a payment extension agreed for their April payment should email the Central Deferment Office cdoenquiries@hmrc.gov.uk. The email should confirm that the payment extension is being requested for the May payment due to COVID-19 and should also indicate that their financial situation remains the same (or has worsened).

All other requests can be made by contacting the Central Deferment Office at the email address above, or by phoning 03000 594243 or the COVID-19 helpline on 0800 024 1222.

The helpline operating hours are between 8am and 4pm Monday to Friday (excluding bank holidays)

 Separate arrangements are available for deferred excise payments. Businesses unable to pay excise duty owed to HMRC due to COVID-19 should contact the COVID-19 helpline to on 0800 024 1222 discuss an enhanced Time to Pay arrangement.

Please note that HMRC can only arrange Duty Deferment extended payment arrangements with the Duty Deferment Account (DDA) holder.  Where a customs agent or intermediary who holds a DDA is granted an extended payment arrangement, HMRC would expect the agent to pass on the benefit of the additional time to pay to the importer if the payment arrangement was agreed on the basis that they’ve been unable to secure payment from an importer.

UK and EU preferential export procedures

Due to coronavirus (Covid-19), in addition to easements already introduced when claiming preference on imports into the UK, Government has put temporary measures in place enabling exporters to apply for, and receive, copy preference documents from HMRC via email when exporting goods under the UK and EU’s preferential trading arrangements.  Further information and links to the forms themselves obtained from Notice 827: UK and EU preferential export procedures and Notice 812: European Union preferences – trade with Turkey

Business rates revaluation postponed

A revaluation of business rates will no longer take place in 2021 to help reduce uncertainty for firms affected by the impacts of coronavirus.

The government is continuing work on the fundamental review of business rates, with the aims of reducing the overall burden on businesses, improving the current business rates system, and considering more fundamental changes in the medium-to-long term. The call for evidence for the review will be published in the coming months.