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 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.
Do I need to pay excise duty on product samples taken out of bond for promotional campaigns?
Yes, you must pay excise duty on samples removed from bond regardless of purpose—there is no duty exemption for promotional sampling. Members confirmed the hard rule: **excise duty applies to any stock taken out of bond**, whether it's for sale or sampling. There is no mechanism to claim duty back on samples that aren't sold. Your only duty-suspended options are: - **Export the samples duty-suspended** to avoid paying duty upfront - **Destroy the stock in duty suspension** and make a formal declaration to HMRC If samples remain in the UK for promotional use (e.g. Ocado sampling campaigns, retailer gift boxes), duty must be paid at the point of removal from bond.