Knowledge Base

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.

Regulation & Compliance5 discussions

What is the HMRC process and form for applying for small producers duty relief on low-alcohol drinks?

Small producers duty relief is a self-governing scheme rather than a formal application process requiring a specific HMRC form. The scheme applies to drinks under 8–9% ABV (such as RTDs and ciders). Members report that the approach is to **keep detailed production records** as proof of eligibility; if HMRC investigates, you present these records to demonstrate compliance. Guidance on the scheme is available from **SIBA** (the Society of Independent Brewers). The relief is not pre-approved; instead, you document your own production and retain evidence in case of audit.

#duty relief#low alcohol#hmrc#tax
Regulation & Compliance3 discussions

What volume threshold defines 'small batch' spirits production, and is there a duty relief scheme for craft distillers like there is for craft beer?

There is no formal government definition of 'small batch' for spirits in the UK, and crucially, **no duty relief scheme exists for craft distillers** despite years of industry campaigning—unlike craft beer, which has tiered duty relief up to 500,000 HL under the previous Labour government's framework. Members discussing production volumes suggest: - **300–400 litres** is cited as an optimum for consistency in a single batch run - **Under 1,800 litres per year** aligns with the old UK distillery licence threshold (before exemptions were granted) - **300 cases per run** (roughly 9,000 bottles at 70cl) is mentioned as a practical small-batch volume - The beer model suggests a **tiered system tied to pure alcohol sold per year** would be the clearest framework, making assessment objective 'Small batch' remains largely a **marketing claim** rather than a regulated term. Members note that large producers (e.g. Aviation) also claim 'small batch' status, making consumer-facing marketing less meaningful. The distinction between

#small batch#spirits regulation#duty relief#craft distilling