Ask the Collective

What should I expect during an HMRC fit and proper test for alcohol trading compliance, and how should I prepare?

An HMRC fit and proper test typically involves one or more officers visiting your premises to assess whether you understand your licence, excise duty obligations, and can demonstrate proper due diligence to prevent duty fraud. **What to expect:** - Officers will ask detailed questions about how your spirits business operates — expect to explain the same concepts multiple times - The focus is heavily on **security and due diligence processes** to ensure no duty fraud can occur - They will assess your understanding of the specific **licence you've applied for and excise duty** requirements - Be prepared for questions that may seem basic or repetitive; the officers may not be deeply familiar with how the spirits industry works **How to prepare:** - **Treat it like a detailed production tour for complete newcomers** — don't skip anything, and mention every number and figure you can - Have clear documentation ready demonstrating your due diligence procedures - Be ready to walk through your security and compliance processes in depth - **Expect a visit to your office/premises**, not just a phone call — at least one case involved two officers attending in person **Overall outcome:** Members who have completed the process report it was "scary but worked out well" — the test is designed to verify competence and fraud prevention capability rather than to trap businesses.