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.
Do you need a premises license to rectify or compound duty-paid spirits in a hired facility for one-off production runs?
No premises licence is required for rectifying or compounding duty-paid spirits, even if you hire a facility for short-term production runs. A premises licence enables you to *sell to the public* but has no bearing on your production activities themselves. Members confirmed this is correct, and noted that you can hire a facility without a premises licence for a month to produce and bottle your duty-paid spirits without issue. For specific guidance, contact your local licensing body (e.g. LCB Sawston if in that region).
Can a spirits rectifier transfer an existing excise license to new premises, or must they apply for a new license?
You can transfer an existing excise license to new premises rather than applying for a completely new one. The process involves contacting the HMRC National Registrations Unit with your new premises details and submitting updated documentation (including new floor plans and equipment entry of plant specifications). However, members note that the exact requirements may vary depending on your local HMRC officer—one member experienced a situation where a new license was required instead of a transfer. Start by emailing the National Registrations Unit and referencing HMRC Excise Notice 39 (Spirits Production in the UK), which contains the formal guidance. The process typically takes some time, so factor this into your relocation timeline.
What are the legal and regulatory requirements for compounding or rectifying spirits at home with duty-paid alcohol?
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.