UK Certificate of Tax Deposit: How to Pay Customs Duties
HMRC has published guidance on the Certificate of Tax Deposit scheme, which allows importers and exporters to pay customs duties and other taxes via deposit certificates rather than direct cash payment. The scheme enables businesses to obtain current valuations of their certificates and track accrued interest. This option may be useful for cash-flow management when handling customs bills on international shipments.
Photo: Leeloo The First / Pexels# UK Certificate of Tax Deposit: How to Pay Customs Duties
HMRC has issued updated guidance on the Certificate of Tax Deposit scheme, a mechanism that allows businesses to settle tax obligations—including customs duties—through deposit certificates. Published on 27 April 2026, this guidance clarifies how importers, exporters, and freight forwarders can use the scheme to manage payment of their tax liabilities.
Who Can Use the Scheme
The Certificate of Tax Deposit scheme is available to any business liable for UK tax, including customs duties on imports and exports. E-commerce merchants, freight forwarders, and SMB exporters managing customs bills can use this mechanism as an alternative to immediate cash settlement.
How the Scheme Works
According to HMRC guidance, the scheme operates as follows:
- Businesses can pay their tax bills by purchasing certificates of deposit
- Certificates accrue interest over time, providing a return on the deposited funds
- Businesses can obtain up-to-date valuations of their certificates
- Interest earned is tracked and credited to the business account
This approach can be particularly valuable for businesses with irregular or seasonal customs duty obligations, as it allows them to manage cash flow more flexibly while maintaining tax compliance.
Obtaining Valuations and Tracking Interest
A key feature of the scheme is the ability to check certificate valuations at any time. Businesses can:
- Request current valuations of their certificates from HMRC
- Monitor interest accrual on their deposited funds
- Plan redemption timing based on valuation changes
The interest earned on certificates provides a modest return, which can offset the cost of holding working capital for customs duties.
Application to Customs Duties
While the scheme covers all UK tax liabilities, it is particularly relevant for businesses paying customs duties on:
- Imports subject to tariffs under the UK Global Tariff
- Exports requiring security deposits or advance duty payments
- Deferred payment arrangements on large shipments
Freight forwarders and customs brokers may also use certificates on behalf of their clients, provided proper authorization is in place.
What this means for shippers
For businesses managing customs bills, the Certificate of Tax Deposit scheme offers an alternative payment method that can improve cash-flow planning. Rather than paying duties immediately upon import declaration or export, shippers can use certificates to defer and structure payments while earning interest. This is particularly useful for high-volume traders or those with seasonal demand. For more on managing customs costs, see our guide to landed cost estimation.
