HMEXSH7010 - Special Payment Scheme: How the scheme works
- 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 payment is calculated as (£500 -
£1000)+ £1000 = £500 (the same as the actual duty
liability)
- 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.
