Closure of the Customs Flexible Accounting System

HMRC has issued an updated copy of the Customs Flexible Accounting System (FAS) notice. The update confirms that the Flexible Accounting System will close permanently on 23 October 2024. After‌‌‌ ‌‌23‌‌‌ ‌‌October 2024, all FAS accounts will be permanently closed.

Businesses with remaining funds in their FAS accounts should request a repayment by 23 October 2024. After this deadline, FAS accounts will no longer be accessible, and funds will not reclaimable. Any unclaimed balances will be retained by HMRC. To request a repayment businesses must submit the FAS1 form to HMRC by 23 October 2024.

The FAS was historically used to pay Import VAT, Customs Duty, Excise Duty and other charges due at clearance by immediate payment. The FAS account worked in a similar way to a bank current account, with the exception that there were no charges for using the account, no overdraft facility and no interest to be gained.

All electronic import declarations must now be submitted through the Customs Declaration Service (CDS). The CDS operates independently from the FAS and offers importers the option to use cash accounts.