Following a number of formal submissions requesting an extended transition period for the move to NCTS Phase 5 to prepare for the implementation of the new phase, HMRC has announced the extended deadline to implement NCTS 5. Please see below the message received from HMRC.
The Common Transit Convention (CTC) authority has announced that there will be an extended transition period for the move to NCTS Phase 5 after a number of other countries confirmed they require more time. HMRC has subsequently received a number of formal submissions from industry requesting the UK makes use of this extension.
HMRC has considered these submissions carefully and have decided to extend the deadline based on views and feedback received from the trade. HMRC is writing to confirm that the new date for implementing NCTS5 in the UK will be 1 July 2024.
HMRC recognises the work that has taken place across industry to prepare for the original implementation date of 16 November 2023. However, from listening to the views of stakeholders, it is clear that there is now strong support for a later implementation date to give industry additional time to prepare.
HMRC has liaised with industry stakeholders to ensure the new implementation date is achievable and has avoided peak periods and other key government project delivery dates. HMRC has advised TAXUD and the CTC of the new implementation date.
What happens now?
Traders should continue to use the current NCTS system until the cutover to NCTS5 on 1 July 2024.
The HMRC Trader Test environment remains open and will be switched into Transitional mode on 11 October 23, as planned. Those who are building software should continue with development and testing to align with the revised implementation date.
HMRC will continue to work closely with stakeholders to support their preparations and will continue to issue regular email updates about NCTS5.
