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”
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.
The above example shows the setup of a deferment account which is being used to allow 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.
EORI (Economic Operator Registration and Identification) reference for the Deferment.
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
Excise and Customs Duty = any transactions matching your Deferment Number within the last 30 days.
Deferment Owners section
Should only contain stock holding accounts where the Deferment owner is also the Stock owner of the goods.
Use the Delete button from the Deferment Owners and Customers using the Deferments Section with Caution
You will not be asked to confirm the deletion of the currently selected customer.
Customers using the Deferment section
You would add stock holding Customers Codes into this section when you are in receipt of a C1207N or C1207S.
Add Customer button
This 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 accounts.
What to do if a customer runs out of credit on HMRC and wants to use a cash deferment?
Setup a Cash Deferment for that Customer marking the Stock holding accounts which will use it.
On the customer record, change the customer default account to the cash account WHEN YOU NEED TO CHANGE TO CASH DEFERMENT.
Return it back to the HMRC number whenever you finish using it.
Under no circumstances should anybody be given the warehouse keepers' own account as their deferment.
Doing so will cause your W5D and ATWD to reject.
Some examples of Deferment account setup:
The Deferment account VINCER is used by the Stock Holding account VINCER (the codes can be the same).
If VINCER has a second account this can also be added into the Deferment Owners, they MUST own the Stock.
If VINCER give another Stock Holding Customer permission to use this Deferment then they MUST appear in the section marked "Customers using the deferment"
The Stock Holding account VINCER must only appear on this HMRC Deferment account.
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.
This screen will allow you to create, edit, or view a Supplier Account.
To create a customer the following would need to set up first
Customer Code
Country
This is used for the Pre-advices for the customer selected.