HMRC warns of delays as thousands of businesses move to new tax system

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Businesses investing in the UK face “significant delays” if they don’t act soon to sign up for the government’s new IT system, HM Revenue and Customs has warned.

The Customs Handling Import and Export Freight (CHIEF) platform will no longer accept import declarations from 1 October – traders will need to use the new Service Declaration.

But with less than two months to go to make the switch, around 3,500 import businesses will set themselves up on the new system – a process that could take several weeks, according to HMRC .

The tax department is now emailing and calling affected businesses to advise them of the steps they need to take, including implementing a proper software program to make declarations on of CDS. The company also issued a general statement warning traders that if they do not register on time, they will not be able to import goods into the country, or will delay the operation for a long time. taking

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Julie Etheridge, director of program and delivery for Borders and Trade, said: “There are two months left until businesses can use the Customs Declaration Service for transport Imports. Businesses must move now or be able to bring their goods to the UK. Registration takes time so businesses should start moving to the Customs Declaration Service to ensure a smooth transition. and avoid risk in their business.

Once they have completed the CDS registration process, companies using a Duty Deferment Account must confirm that they have created a new direct debit to ensure they are paid through the new platform. If they do not do so, “their current account cannot be used again, and must be paid immediately each time an input notification is made”, HMRC said.

As indicated by Public technology last month, the Customs Declaration Service was troubled for several months by problems with VAT declarations provided to business users. Service updates were issued in March, April, and July advising merchants of similar issues with the service, resulting in monthly VAT statements not being received, slow, and inaccurate.

According to an update published last week, HMRC said it had “resolved the issue and issued closing statements” for everyone.

Traders who downloaded their June VAT returns before 13 July have been advised not to use those numbers in their VAT returns – as HMRC said the information provided “may not be right”. Businesses should log into their online CDS dashboard to get an update.

After nearly 30 years in operation, the CHIEF system will stop making outbound announcements on 31 March 2023, at which point it will be shut down for good, replaced by CDS .

HMRC warns of delays as thousands of businesses move to new tax system

Source link HMRC warns of delays as thousands of businesses move to new tax system

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