The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
The HMRC rectifier licence requirement has been removed, meaning you can legally compound or rectify duty-paid spirits without a licence. However, there are several other legal and operational considerations to be aware of: **Regulatory and compliance requirements:** - You still need **AWRS registration** (Alcohol Wholesaler Registration Scheme) if you're operating as a business - **Health and safety regulations** apply, including ATEX (equipment in explosive atmospheres) and DSEAR (dangerous substances and explosive atmospheres regulations) if working with alcohol vapours - **Record-keeping, batch control, and quality control systems** are essential and will be expected by regulators **Financial and duty considerations:** - There is **waste from duty-paid alcohol** that you may be able to recover duty on — clarify this with HMRC as it could affect costs - **Bonded warehouse facilities** (to operate on a duty-suspended basis) remain much more difficult to obtain than the old rectifier licence was, so duty-paid compounding is the more practical route **Strategic considerations:** - **Contract distilling is often significantly cheaper** than in-house production (members report paying around £5 per bottle for contract work), so the decision to make in-house should be driven by story, origin, or product testing rather than cost - In-house compounding can work well for **testing new products or building local origin stories** before committing to larger-scale production **Member caveats:** While the licence removal is a legal change, it was not considered a major game-changer by members, as the rectifier licence was already relatively easy to obtain. The real barriers (bonded operations, H&S compliance, systems) remain unchanged. Members recommend speaking to a specialist about the detailed operational implications before starting.