Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What duty changes on spirits are expected in the upcoming HMRC budget announcement?
Members anticipate a spirits duty increase of 30–35p per 70cl bottle of 40% ABV (roughly £0.20–£0.29 per litre), with the announcement expected on 27 October. However, there is uncertainty: if the government states "no change to government policy" on spirits duty, this will in effect trigger an automatic 4.9% rise in line with RPI. The government is expected to simplify the duty structure by targeting growth categories (pre-mixed drinks, seltzer) while being gentler on UK beer—the most vocal complainants. Members also highlight ongoing industry lobbying through the BDA and WSTA to scrap the duty stamp scheme, which was introduced post-Brexit to prevent cross-border duty arbitrage but is now seen as unnecessary bureaucracy. There is frustration that craft-producer relief schemes (similar to the US Craft Beverage Modernisation and Tax Reform Act model) remain blocked by lobbying from large spirits producers, despite years of campaigning.
What licenses do I need to sell spirits B2B directly to retailers without a premises licence?
You do **not** need a premises licence to sell spirits B2B to retailers. However, you **do need AWRS (Alcohol Wholesaler Registration Scheme)** — this is mandatory. Key points: - **AWRS registration** is essential and non-negotiable for B2B spirit sales - You can sell off a vehicle (e.g. bike/cargo bike) and invoice from your business address without a premises licence - In some areas, you may need a **TEN (Temporary Events Notice)** to sell off the bike — this varies by local authority, so check with yours - The critical requirement is that duty is paid; the premises licence itself is not required for B2B wholesale Caveats: Local council rules on mobile sales can vary, so it's worth confirming TEN requirements with your local licensing authority before you start delivering from a vehicle.
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.
How do you obtain kosher certification for a beverage or spirit product in the UK?
Kosher certification for drinks is straightforward and several members have completed the process successfully. The main steps involve: - **Kosher.org.uk** — The primary UK certifying body; members have chatted to them at trade shows and recommend starting here for guidance. - **STAR-K Certification, Inc.** (US-based with UK presence) — A recognized alternative certifier useful if you need US recognition or want multiple jurisdiction approval. Contact: 122 Slade Avenue, Suite 300, Baltimore, MD 21208; (410) 484-4110 x 207; Fax 443-334-0123. Members can arrange introductions. - **Local Rabbi/KLBD certification** — You need the services of a Rabbi to get certified. One member used a certifier in Stockport for multiple products and offers direct referrals via DM. Members report the process is "pretty straightforward" and "wasn't as hard as we thought." Having multiple certifications (particularly US-based ones) is useful because "not all certifications are recognised everywhere." If interested in specifics, several members have completed this recently and are willing to share detailed experience via direct message.
What are the specific UK labelling requirements for mini bottles of spirits (5cl, 18–43% ABV)?
For mini bottles of spirits in the UK market, labelling requirements are significantly stripped back compared to full-size bottles. The essentials are: - **Volume and ABV** — must be clearly displayed - **Spirit category** — the type of spirit (e.g. vodka, gin, whisky) must be identified - **UK address** — you need a UK address listed on the label to sell in the UK; this does not have to be the importer, but a UK address is required - **Pregnancy warning** — the status of this requirement was queried by members; check Trading Standards for current guidance Members recommend checking Trading Standards directly for the most up-to-date and authoritative requirements, as regulations can shift. The consensus is that mini bottles have far fewer mandatory elements than standard bottles, making them simpler to label from a compliance perspective.
Do you need a premises license to rectify or compound duty-paid spirits in a hired facility for one-off production runs?
No premises licence is required for rectifying or compounding duty-paid spirits, even if you hire a facility for short-term production runs. A premises licence enables you to *sell to the public* but has no bearing on your production activities themselves. Members confirmed this is correct, and noted that you can hire a facility without a premises licence for a month to produce and bottle your duty-paid spirits without issue. For specific guidance, contact your local licensing body (e.g. LCB Sawston if in that region).
What compliance and labelling specialists should we use for spirits, and what are the legal requirements for labels on drinks for private events?
For compliance and labelling expertise, members recommend consulting the **WSTA** (Wine & Spirit Trade Association) if you're a member, and the UK government's official guidance at gov.uk/guidance/labelling-spirit-drinks. For international market expansion, **Ashbury** specializes in compliance support across different markets, though members note they are expensive but deliver good service. For nutritional information on samples not for sale (e.g. private event giveaways), members report that labelling requirements may be less strict than for commercial products. One member's experience with a previous business showed that unlabelled product was acceptable for small-scale sampling as long as nutritional information and allergen details were made available to people at the point of sampling. However, members emphasize this was very small-scale experience and should not be taken as definitive legal advice—checking gov.uk guidance or consulting a specialist like Ashbury is recommended for certainty.
What practical steps should UK spirits brands take with labelling and business registration when selling into EU markets after Brexit?
UK brands selling to the EU post-Brexit need to navigate labelling and business structure requirements carefully. Members' experience suggests the following approach works: - **EU warehouse registration** — Several members operate successfully via an EU-registered business entity (e.g. in the Netherlands), which significantly reduces rejection risk at borders. This appears to be the most reliable route. - **Label address switching** — Once you have an EU registered business, add that address to the back label rather than the UK business address. This simple change has prevented stock rejections for members who implemented it. - **Invoicing from EU entity** — Members report that simply adding the EU address to the label and continuing operations "as per" (without separate bank accounts or formal accounts) has worked; however, confirmation on whether formal invoicing from the EU company is legally required would be worth verifying with your accountant. - **Stock rejection risk** — At least one established brand (Chase) had stock turned away from Spain and Italy immediately post-Brexit, suggesting early implementation of the EU entity structure is advisable to avoid delays. **Caveat:** The discussion suggests practical workarounds rather than definitive legal guidance. Members recommend speaking to your accountant about formal invoicing and accounting requirements for an EU-registered entity, as the excerpts don't fully clarify those obligations.
What is the current UK spirits duty rate and timeline for increases?
Members confirmed that UK spirits duty was increased from 1 August 2023, with the rate rising to approximately £1.35 per litre at 40% ABV. The increase aligns with inflation at roughly 10% year-on-year, with the rate now fixed. Members noted that lobbying efforts may attempt to influence future government decisions, but the current trajectory appears locked in unless there is a significant policy reversal. One member shared a link to just-drinks.com reporting on the duty changes, suggesting that's a reliable source for tracking updates.
What are the UK commodity codes and customs procedure codes needed for importing spirits from the EU post-Brexit?
Post-Brexit spirit imports from the EU require both a commodity code and a customs procedure code (CPC). Members found the process significantly more complex than pre-Brexit. **Resources and codes:** - **UK Trade Tariff** (gov.uk/trade-tariff) — the official government tool for looking up commodity codes for imports; includes options for different container sizes (spirits over 2L have specific codes) - **Customs Procedure Code 0700000** — mentioned as the likely CPC for spirit imports, though members noted this is the area where complexity lies ("box 37" references suggest detailed customs declaration requirements) **Caveats:** Members found the CPC lookup particularly challenging and non-intuitive. The Trade Tariff tool is the authoritative source, but members recommend consulting it carefully and potentially seeking specialist customs advice if the procedural code isn't immediately clear. One member flagged that even experienced importers found box 37 (part of the customs declaration form) confusing.
Where can we get nutritional information for spirits, and is it acceptable to provide estimated data to wholesalers without formal testing?
Members report two main routes for obtaining nutritional data: - **Campden BRI** — offers nutritional testing for spirits at a couple of hundred pounds - **Brewlab** — used by members for this service; contact Alison Douglas, Managing Director and Laboratory Manager, at alison@brewlab.co.uk or +44 (0) 191 549 9450 (Unit 1 West Quay Court, Sunderland Enterprise Park, Sunderland, SR5 2TE) On providing estimated data: Members have successfully used **ChatGPT** to generate estimated nutritional profiles for wholesalers when formal testing hasn't been done. The approach is to input known botanicals and sugar content, ask for calculations of energy, calories, sugar, and carbs per 100ml and 70cl serving, and use these estimates for wholesaler inquiries—members report these estimates are "good enough for wholesalers" and "fairly accurate" given the data isn't on packaging. One member reported this approach is "working." **Note:** Using estimated rather than tested data should be considered in context of your compliance obligations; this reflects what members report doing, not formal regulatory advice.
What is the duty treatment and HMRC claim process for liqueurs made from duty-paid spirits at lower ABV?
The duty system for lower-ABV liqueurs made from duty-paid spirits is complex and involves understanding the differential duty rates by alcohol content. **Key points from member experience:** - Members are using duty-paid NGS (neutral grain spirit) at 96% ABV and paying duty at that rate, then diluting to produce liqueurs at 20% ABV, which attracts a lower duty rate per litre of pure alcohol (£3.14 lower than spirits over 22%) - One member confirmed they do this but had not previously claimed back the duty difference—suggesting a potential avenue that may not be widely utilised - The mechanism is that duty is charged relative to the alcohol content in the final liquid; however, using pre-duty-paid spirit as the base complicates the claim process - Circumstance matters: one member explained they are forced to use duty-paid spirit because their premises sits within another producer's site, which affects their sourcing options **Caveat:** The discussion did not contain detailed step-by-step HMRC claim procedures or confirmation of eligibility criteria. Members appear to understand the duty rate differential but actual claim experience was minimal in this exchange. Recommend seeking specialist HMRC guidance or duty consultant confirmation before implementing a claim strategy.
What is the scope of Small Producer Relief for alcohol duty, and does it cover spirits?
Small Producer Relief has different scope depending on the drink type, and **does not apply to spirits**. - **Lower-strength beverages (made wine, cider, perry, etc.)** — Relief applies to products up to 8.5% ABV - **Spirits** — Unfortunately, there is no equivalent small producer relief for spirits at all, despite collective campaigning by members to change this - **Bottled cocktails and RTDs under 8.5% ABV** — These may be eligible if they fall within the duty relief categories For full eligibility details, see the [official HMRC guidance](https://www.gov.uk/guidance/check-if-youre-eligible-for-small-producer-relief-on-alcohol-duty). **Caveat:** Members have noted this is a significant gap in the relief scheme, particularly for spirits producers, and campaigning efforts to extend relief to spirits have not yet been successful.
What icons, disclaimers and information are legally required on spirits labels for export?
Legal labelling requirements for spirits exports are less prescriptive than many assume. The essentials are **spirit type, ABV (alcohol by volume) and volume**—these are the core legal requirements across most markets. Beyond that, requirements vary significantly by destination market. Members recommend consulting **The Portman Group**, which provides comprehensive guidance on labelling. However, note that many Portman Group recommendations are suggested best practice rather than legal obligations. The key is to clarify your specific export destination(s), as different markets have different rules. Members emphasise checking requirements country-by-country rather than applying a one-size-fits-all approach.
How do UK drinks brands obtain duty stamps from HMRC, and what changes are coming in 2025?
Duty stamps are currently free to request directly from HMRC; they are category-specific and can be applied to bottles before shipment to the UK. However, this system is being phased out. **Current process:** - Request duty stamps directly from HMRC at no cost - Stamps are category-specific (spirits, wine, etc.) - Overseas brands can apply stamps before shipping or have UK distributors apply them on arrival **Regulatory change:** - Duty stamps will be discontinued in May 2025, ending the requirement entirely - Until then, brands can continue using stamps or have Licensed Customs Brokers (LCBs) apply them on import - Members noted that stamp application (whether manual or via LCB) adds cost and process friction; using an LCB to handle this until the April 2025 deadline is a practical option if stamps are not pre-applied **Context:** Members flagged that the stamp system has had limited impact on grey-market reduction and is considered by some a bureaucratic process of questionable value—hence the planned abolition.
Are non-standard spirit bottle sizes (e.g., 75cl) legal for exporting spirits to the UK?
Non-standard spirit bottle sizes are **not legal** for spirits in the UK market. Members' experience confirms that while you may not face immediate enforcement action, the regulatory risk is not worth taking. - **UK Weights and Measures regulations** require spirits to be sold in specified quantities only (typically 20cl, 35cl, 50cl, 70cl, 1L and larger standard sizes). 75cl does not meet these legal requirements. - **Member experience**: One founder launched with 250ml bottles and realised after 6 months it was illegal; they quietly switched to the compliant 200ml and 500ml sizes under the guise of a "new product launch" to avoid immediate enforcement. - **Risk profile**: You won't necessarily get "pulled up for it immediately," but relying on this is unwise for a legitimate export operation. **Caveats**: If your Arrack is currently bottled in 75cl in Sri Lanka, you will need to rebottle into a UK-legal size for UK distribution. This adds cost and complexity to your supply chain.
What are the key duty and cash flow differences between distillers and brewers under UK alcohol duty regulations?
UK alcohol duty treatment differs significantly between distillers and brewers, with major implications for cash flow and growth: **Duty payment timing** — Brewers pay duty on invoicing (when they sell), but distillers must pay duty before sale. This creates a substantial cash flow disadvantage for spirits producers. **Small producer relief** — Brewers benefit from small producer relief on duty, but distillers have no equivalent relief available. Members have flagged this as a major parity issue and called for distillers to receive the same relief as small brewers. **Implications** — The combination of upfront duty payment and lack of small producer relief means distillers face significantly higher working capital requirements than brewers at comparable production scales. Members noted this is a persistent structural inequality in the regulatory framework that disadvantages the spirits sector relative to beer.
What is the correct conversion rate for cans to 9L case equivalents for regulatory reporting?
Members use different approaches depending on whether they're converting packaged cans or calculating spirit equivalents for RTD/cocktail products. **For canned beverages:** The straightforward method is to divide physical case sales by 3. Since 12 × 250ml cans = 3L in a physical case, three physical cases = 9L case equivalent. So simply divide your invoiced physical sales by 3 to get your 9L reporting figure. **For RTD and spirit-based products:** Members use volume-based equivalency rather than a fixed ratio: - **Diageo's historical approach** — used 10× the volume as a case equivalent (so 90L of RTD = 1 × 9L case equivalent), based on the logic that spirits are ~40% ABV and RTDs are roughly 1/10th of that strength. - **Actual spirit content method** — some members calculate based on the actual spirit volume used to create the product. For example, if a 20L KeyKeg of a spirit-based RTD contains enough to make 125 cocktails with 4cl spirit each, that's 5L of spirit equivalent to report—described as "probably not the 'right' way" but "very logical and it works." **Caveat:** Members noted uncertainty about which is the "official" method for regulatory purposes, so clarifying with your local regulatory body (HMRC/equivalent) on which approach they expect is recommended.
What is the correct HMRC tax code for spirits over 22% alcohol?
The tax code for spirits over 22% alcohol has changed. **Code 345** is now the correct code to use when submitting W5 forms to HMRC. This replaced the previous code 451. If you're experiencing issues submitting with the new code, check you're referencing the current version of the HMRC guidance, as some members found they were initially reading outdated information.
Do you need a premises licence for B2B spirit trading, or is AWRS registration sufficient?
AWRS registration alone is sufficient for B2B spirit trading—you do not need a premises licence for business-to-business sales. However, if you trade D2C (direct-to-consumer), a premises licence becomes mandatory.
Is duty suspension available for online spirits sales?
No — duty suspension is not available for online sales. Members confirmed that online spirits sales do not qualify for duty suspension relief; this is a limitation of the scheme. For guidance on duty suspension schemes more broadly, refer to the HMRC Excise Notice 39 on Spirits Production in the UK, which outlines the conditions under which duty suspension *is* available (typically for production and storage in bonded warehouses, not for direct-to-consumer online distribution).
How do small spirit producers apply for small producer duty relief and what documentation is needed?
Small producer relief (SPR) requires an HMRC tax certificate, despite initial confusion about whether the scheme is self-regulated. **Application and certification:** - You must apply to HMRC to get a tax certificate showing approval to use the new relief code. This is not purely self-regulated; the certificate is mandatory. - The responsibility to calculate relief correctly and apply the code falls on you as the producer, but you cannot proceed without the certificate first. - If you use someone else's production facility (e.g. a bond or contract manufacturer) that is larger than you, you will likely be ineligible, even if you are a small producer. The relief applies only if you are actually producing under your own operation. **Eligibility scope:** - SPR applies to spirits producers, not just brewers or low-ABV products. - For made wine, the relief is capped at 8.5% ABV; the rules may differ for spirits. - Members recommend checking the official [HMRC guidance](https://www.gov.uk/guidance/check-if-youre-eligible-for-small-producer-relief-on-alcohol-duty) for current eligibility criteria. **Member experience:** One member reported that their bond (Chichester Bond) initially said they could apply the new code themselves, but clarified that HMRC certification was required first. The relief makes a material difference to duty costs if you qualify.
What is the correct excise commodity code for canned RTD spirits at reduced ABV?
For canned RTD spirits at reduced ABV (below the original spirit's proof), members confirm the commodity code is **2208 90 69**, classified as "other spirituous beverage in containers holding 2 litres or less." This applies even when the finished product is significantly lower ABV than the base spirit (e.g., rum-based RTDs diluted from 40% to 6% ABV). The CN code 2208 90 00 is the parent code; 2208 90 69 is the specific classification for sub-2L containers. Multiple members verified this classification with their own advisors, confirming consistency across the community.
What are the key changes to alcohol duty rates under the new budget, and how do different spirit categories and ABV levels affect duty liability?
The new budget restructures alcohol duty around five bands based primarily on alcohol strength (ABV), with the same duty rate per litre of pure alcohol applied across all product types within each band—with limited exceptions. **Structure and key features:** - Duty is levied per litre of pure alcohol, standardised within each of the five bands - The 3.5–8.4% ABV band applies the same rate for wine, made-wine and spirits, with a slightly reduced rate for beer and a much reduced rate for "plain" cider (fruit ciders remain taxed as made-wine) - Spirits at standard spirits strength (typically 40% ABV and above, e.g. whisky) fall into the highest duty band and will face the steepest tax - Lower-strength products (below 8.5% ABV) are treated equivalently regardless of whether they are wine, made-wine, beer, cider or spirits **Winners and losers:** - **Sparkling wine** and lower-strength products benefit from reduced rates - **High-strength table wines** will see increased duty - **RTDs and spirits-based drinks below 8.5% ABV** qualify for "craft" producer reduced rates if produced by eligible small producers - **Craft spirits producers at full strength** are notably excluded from reduced-rate eligibility, despite the artisan sector's comparable claims to support **Industry context:** - The Scotch Whisky Association has already flagged the changes as negative for the sector - Some producers of fortified made-wines and spirits-based flavoured drinks may switch to spirits classification, as ethyl alcohol offers cost advantages over fermented alcohol as a base ingredient - This represents a shift from the "cooler" regime (1988–2002), which previously applied flat duty bands for lower-strength products across all categories **Caveat:** The duty structure lacks explicit justification for excluding full-strength craft spirits from reduced-rate support.