DON’T RUN RISK OF HMRC FINES FOR COCKTAIL DELIVERIES AS HOME DELIVERIES BOOM, BUSINESSES NEED SPECIAL PERMISSION FROM HMRC FOR THE OFF-SALE OF PRE-MIXED COCKTAILS. HERE, UK LAW FIRM TLT EXPLAINS ALL
C
alled a compounder’s
sold unmixed for mixing at home, only
licence, HMRC can
pre-mixed cocktails.
impose penalties if operators are engaging
“Operators could be in for a nasty
in these practices without
surprise if they are deemed by HMRC
the necessary paperwork. The licence
to have been too slow to make the
is necessary even if a business is mixing
application. There is no charge for
the cocktails at an on-licensed premises,
applying, so subject to complying with
so long as the sale is for customers
the requirements for producing the
elsewhere.
products in accordance with the law, this
The warning comes as bars, restaurants,
is an administrative process only.
pubs and drink brands are increasingly offering cocktail home deliveries as a
“Cocktail makers looking to offer this
way of continuing to trade during the
service will also need a premises licence
pandemic. A number of new pre-mixed
to sell alcohol. For those who already
cocktail brands have also launched over
have a premises licence, they will need
the last year, to cater for the homebound
to ensure they are permitted to provide
consumer.
off-sales without restrictions that would otherwise prevent this activity.
According to HMRC, you are a
“The current temporary Covid
compounder if you “combine or mix
deregulation of off-sales, along with the
plain spirits or previously compounded
suspension of conditions, will assist the
spirits with any other substance, except
majority of premises licence holders, but
water, so as to distinctly alter the
it is worth seeking advice to ensure that
character or flavour of the plain spirits or
this applies where otherwise your licence
compounded spirits, producing a new
would not allow it.”
compounded spirit.” The compounder’s licence also applies HMRC also says: “If you’ve not applied for
in Scotland.
a licence when you should have done, you must let us know without delay.
Stephen McGowan (pictured right),
You’ve the right to appeal if we impose a
partner and head of licensing (Scotland)
penalty.”
at TLT, says: “In addition to the HMRC
COMMENT
permissions, in Scotland if you are doing
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Piers Warne, legal director at TLT, says: “A
home deliveries of cocktails, or any
lot of operators don’t realise they need a
alcohol, this facility should be clearly
compounder’s licence to legally offer this
stated on your premises or occasional
kind of service.
licence under the Licensing (Scotland)
“It has largely flown under the radar, but
Act 2005 to avoid any issues with the
with the recent rise in home deliveries
licensing board. There are also special
of alcohol and specialist cocktail makers
rules you must observe for home
looking to supply their creations directly
delivery, including keeping records and
to consumers at home, the genie is well
following age verification processes.”
and truly out of the bottle.
Businesses can apply for the licence on
Remember this does not apply to spirits
the gov.uk website.
DISTILLERS JOURNAL
