What is the duty payment schedule when releasing spirits from duty-suspended to duty-paid status?

Duty is payable **on or before release** from bond, unless you have duty deferment set up (in which case payment is **monthly**).

The process works as follows:

- **W5 form (ATWD system)** — You must raise a W5 document within the Alcohol & Tobacco Warehousing Declaration (ATWD) system (accessed via Government Gateway login). This form tells HMRC the volume of alcohol at 100% ABV you're releasing, and HMRC calculates the duty owed. You then pay that amount to HMRC. - **W1 monthly report (ATWD system)** — At the end of each month, you must also submit a W1 document within ATWD. - **Timing** — Members report paying duty "on release, or within a few days." One member noted their Trade Facility Warehouse approval specifies all operations must be completed within 30 days of the rectifying/compounding process, but members have reported that HMRC has since removed time-limit restrictions on bonded storage, allowing unlimited storage regardless of original approval terms. Check your most recent warehouse approval and confirm current conditions with HMRC or the BDA. - **Duty deferment option** — If you have duty deferment set up, payment is deferred to **monthly** rather than on release.

**Caveats:** HMRC does not proactively explain this process. Members strongly recommend reading HMRC Notice 196/197 to confirm current rules. If you need detailed guidance, reach out to members via DM — they've navigated this and can provide specific help.