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.
How do you claim back UK excise duty that has already been paid on stock that is subsequently exported?
Duty drawback on already-duty-paid stock is possible but requires strict compliance with HMRC procedures. Members recommend: - **Excise Notice 207** — the key document outlining the exact procedure, timescales, and evidence requirements. Follow it precisely or your claim will be rejected. - **Warehouse the stock for export** — you need to maintain detailed supporting documentation of the original duty payment and the export transaction. Gather a full dossier of evidence before submitting. - **Tax stamps** — confirm whether your UK stock carries tax stamps, as this affects the claim process. Caveats: HMRC's requirements are strict and the process can be bureaucratic ("get ready to share your inside leg measurements with HMRC"). An alternative some members suggested is to arrange future exports on an underbond basis (duty-unpaid) rather than claiming back on already-duty-paid stock, which avoids the drawback process entirely.
What is the correct procedure for disposing of out-of-date and damaged duty-paid alcoholic stock, and how should it be recorded for tax purposes?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duty-paid alcoholic stock (such as canned RTDs), you may be eligible to claim excise duty drawback when disposing of out-of-date or damaged goods.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.