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CDS Payment Options discussed: How to pay HMRC using CDS?

There are numerous way you can pay HMRC from Cash Accounts to Duty Deferment and more. Discover them here and contact us to help you select the right ones.

Cash Accounts

The Customs Declaration Service operates on a cash basis. These take the place of the CHIEF's Flexible Accounting System (FAS). All companies who sign up for the Customs Declaration Service are issued a cash account instantly. A trader may deposit money into their cash account and then use that money to pay for declarations. A trader may also authorise an agent to pay for declarations on their behalf using their cash account.

Ask us how you can use the cash account for Customs Declaration Service declarations.

Accounts for duty deferment

A duty deferment account enables you to make one payment each month for any imports, rather than paying each time you import products, which helps you manage your cashflow.

Whether you utilise a third party to make declarations on your behalf, such as a freight forwarder, customs agent, or express operator, you should check with them to see if you need your own duty deferment account or if you may use theirs. Your intermediary will be able to advise you on the best route to take in this situation.

Ask us to advise you on how you can open a duty deferment account.

Top-up payments

If you have a Customs Declaration Service duty deferral account and you have reached your monthly deferment limit, you may make a payment to boost your available amount. When making a duty deferral top-up payment, your payment reference will be 'CDSD' followed by your duty deferment number. Ask us how to replenish your duty deferral account with the Customs Declaration Service.

Immediate payments

A business has the option of paying when filing an import declaration. A trader may utilise the following methods to make a payment on the same or next day:

  • Banking over the phone or online (Faster Payment)

  • CHAPS (Clearing House Automated Payment System)

  • Using the online payment facility, you may pay with a debit card or a corporate credit card.

A trader may also pay via BACs (Bankers Automated Clearing Services), which will be processed in three working days, or by check.

When making an urgent payment, your payment reference will be 'CDSI' followed by the particular number provided for you by Customs Declaration Service.

Learn more about how to pay for goods reported using the Customs Declaration Service.

Accounts with a guarantee (including individual guarantees)

A customs guarantee is an agreement to settle customs tax, import VAT, and excise arrears. When duty is not paid at the time of import or export, it is often demanded. When the amount of import tariffs is uncertain or contested, a guarantee may be required.

A financial institution must support guarantees.

Instead of giving separate individual guarantees, a general guarantee account enables you to give many individual guarantees from the same account. It also permits you to continue importing items into the UK while paying the agreed-upon sum later.

Download HMRC's Guide

CDS Finance Factsheet
Download PDF • 392KB

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