A Deferment account is an account that a customer uses to record the duties for goods which need to be paid. There are two types of deferment accounts Government provided account - where you have your account setup with the relevant tax body and you pay them directly. Cash account - where the warehouse are paid the duty and they will then transfer payment to the government on your behalf.
When setting a stock holding customer up in VW you have to determine whether they have a government account for deferment or they will be using cash, this is on the Customs tab of the customer setup and the field is called “Deferment Agreement” | Tip |
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You do not have to be holding stock in the warehouse to record a deferment account. You can have a deferment account which can be used for “duty deferring” this is when the stock holding customer is charging an alternative customer for the duty. |
When you open the deferment account form you should see something similar to the example below.  Image Removed Image Added| Info |
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The above example shows the setup of a deferment account which is being used to allow stock holding customer AMA to charge the TESCO deferment account. |
A Deferment Account is used to defer paying HM Revenue & Customs charges on imports. If one of your Customers has a Deferment Account, they will supply all the details you need to fill in this page and this would have been set up when setting up the Customer. You can also use this screen if you need to set up a Deferment Account that is not owned by a Customer, ie your own Deferment Account You need to fill in the details as per the Deferment Account approved by HMRC.Once the Deferment Account details have been entered you need to add the Customers that can use this Deferment Account. It is possible to have multiple Customers using the same Deferment Account. Cash Deferments Excise = Sum of Excise Duty Values for any transactions that do not yet have a Day End Doc No and the Movement date is between the Current Month Start and Current Month End. Customs = Sum of Customs Duty Values for any Transaction that has not been put on CFSP where the Movement date is between the Current Month Start and Current Month End.
Own Deferments | Note |
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Use the Delete button from the Deferment Owners and Customers using the Deferments Section with Caution
Those will be added either as “OWNER” where you are the stock holder and owner of the deferment OR a user “Customer using deferment” where the stock holding customer can charge this account with the duties.
It is possible to have multiple Customers using the same Deferment Account. | Note |
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Delete button - You will not be asked to confirm the deletion of the currently selected customer. |
Customers using the sectionYou would add stock holding Customers Codes into Most fields in this section when you are in receipt of a C1207N or C1207S.Add Customer button  Image RemovedThis screen will populate once you have clicked on the Add Customer button on the Deferment. On this screen, you will be able to select if the Customer is an owner of the Deferment or able to use the Deferment. Customer using the Deferment, you will be able to set up the Start Date, End Date, or if the Customer can use it Unlimited Period.
Standard HMRC deferment account setup Duty Deferments: A Deferment account is usually a 7 digit number beginning with a 7 or an 8 and is issued by HMRC. Within Vision, we allow HMRC issued Deferment accounts and 'Cash' Deferment accounts. We provide the ability within Vision Bond for those with Cash Deferments (W5) to be moved onto the Warehouse Keepers Deferment account (thus producing a W5D).
Cash Deferments: Cash Deferments are issued by the Warehouse Keeper to allow Stock holding Customers without an HMRC deferment to be able to pay the duties owed on their Stocks as it leaves the warehouse. Some warehouses charge a surcharge for this service which is available on our system. Anybody who uses a Cash Deferment will receive an additional "Duty Demand" during the day end process, this can also act as a direct debit notification. These Customers also receive their own "Duty and VAT" summary which provides supporting evidence for duty transactions.
How to Use: You set each Deferment account on the system, you only need to set it up once for each Customer and you enter into the Deferment Owners box all the Stock holding accounts which will use this account where the Deferment Owner and Stock Holder is the same. HMRC only issue a single Deferment for each trading entity based on VAT numbers. As you do not have VAT numbers for many of your Cash Deferment holders we can not use the same terminology. However the same principle should exist - One Customer should have a single Deferment and that single deferment can then be applied as the Deferment Owner over multiple Stock holding accountsare self explanatory however please note the following fields Field Name | Notes |
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Deferment Account | Generally this would be set to your customers account code or if this is a charge to deferment only then use a suitable code to identify this account. | Deferment Number | For Government duty accounts - this is the deferment number of your account. It is 7 digits long For Cash duty accounts - you will have a virtual account number here which the system generates which is seven characters long starting with your customer code followed by 4 number. | Email Address | This is the address which is used to send the following information For cash customers - the Duty Demand - which is the amount of duty owed, this is generated each time the day end is run within Vision Bond For All cutomers - excise and vat report - which is automatically generated each night at 20.00
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This area will only be available if the account you are setting up is a cash account. The surcharge is the amount you will be charging the customer for the use of a cash deferment account. Optional Finance extract is available - this is not a standard module, but where this is enabled the Vision Bond system will provide you (in addition to the paper report) an extract which you can then load onto your finance / accounting system, if you are using this option then the account code must be completed here as well as the nominal account code this transaction will use on the finance system. The Direct Debit option - this will add an additional notification onto the duty demand (which is created at Vision Bond day end operation) regarding the payment of the deferment by direct debit. Image AddedBy clicking the button the above form will open up allowing you to specify who can use this deferment account. This is the instruction as to who will be able to charge the deferment, you will need to enter the customer code and customer name and then you need to decide whether this is a “Owned” or “Customer using deferment” addition to this deferment. If it is an owner then nothing else is required and you can ADD customer. If it is somebody using the account then based on the C1207 form you have you need to decide and enter the appropriate information before pressing the ADD Customer button.
Under no circumstances should anybody be given the warehouse keepers' own account as their deferment. In the current version, you can have VINCER setup on other accounts as Stock Holder, this is WRONG. However, you can have them on a Cash Deferment for times when the Customer is in need of additional credit (e.g. Christmas). This will be restricted in a later version as it can cause issues if added to multiple REAL Deferment accounts.
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