What is the correct procedure for disposing of out-of-date and damaged duty-paid alcoholic stock, and how should it be recorded for tax purposes?

For duty-paid alcoholic stock (such as canned RTDs), you may be eligible to claim excise duty drawback when disposing of out-of-date or damaged goods. However, the process depends on your specific circumstances.

**Key steps and considerations:**

- **HMRC Excise Notice 207** — consult the official guidance on excise duty drawback procedures at https://www.gov.uk/government/publications/excise-notice-207-excise-duty-drawback/excise-notice-207-excise-duty-drawback. This is the authoritative source for how to record and claim drawback. - **Ingredient sourcing matters** — if you've purchased duty-paid ingredients (rather than bulk excisable goods), the drawback process may be more complicated, so clarify your supply chain before proceeding. - **Volume threshold** — for very small volumes of stock, the administrative effort and cost of claiming drawback may outweigh the tax recovery, so assess whether it's worth pursuing for minor quantities. - **Recording** — ensure proper documentation and accounting records are kept to support any drawback claim.

**Caveat:** Members suggested exploring local options for stock reallocation (e.g. Canvas) before disposal, to avoid the drawback process altogether if the stock can be used or sold elsewhere.