Business advice: Legal
Excise Duty Regime Management In this article, our legal partner Napthens Solicitors invites guest author Mark Rowbotham to discuss the crucial issues surrounding Excise Duty - a taxing topic for many. Mark has spent many years dealing with the Excise and Customs sectors, initially as an Officer in HM Customs & Excise (later HM Revenue & Customs) and latterly as a Customs & Excise Consultant. Breweries are big business. There is huge demand for the amber nectar – and as well as generating significant profits for the sector this demand implies significant revenue for the government in the form of Beer Duty payable to HMRC as Excise Duty.
. The main areas of concern are:
The Chancellor of the Exchequer has promised a long overdue reform of the UK Excise Duty regime. The current regime is unwieldy and difficult to understand and comply with and the duty aspect of beer (and spirits) production and distribution poses problems for those managing the financial aspects of the business. Establishing a brewery business is fraught with issues, given the bureaucracy required to satisfy HMRC. However, it is difficult to find professionals suitably experienced in duty management, especially concerning small breweries producing niche brands.
• Record keeping
The consultancy can help with the following processes:
• Conditions of production and storage
• Analysis of the excise business proposal
• Movement of excisable goods (domestic and international)
• Application for HMRC Excise Approvals
HMRC considerations Establishment of both breweries and distilleries is popular, with numerous enterprises springing up each year. HMRC requires such businesses to register online via GOV.UK websites, complete various application forms and have systems in place to manage the excise process in accordance with HMRC requirements - including excise duty management and record-keeping. For newcomers to this sector, such requirements can prove daunting. Even long-standing enterprises experience challenges, especially in obtaining advice on technical issues where excise management is concerned or where the company needs specific advice on excise issues. The process of setting up a brewery or distillery can be time-consuming and all traders in excise goods need to be fully conversant with both the application and establishment process. Even after approval of such an establishment, the need for fully-compliant processes for production and management of excisable products is vita
set out by HMRC regarding establishment and operation of breweries and distilleries, and advising on managing these enterprises, especially concerning compliance with HMRC requirements.
• Excise approval • Excise compliance • Documentation • Procedures
• Implementation of procedures to ensure compliant Excise management
• Overall knowledge and awareness of Excise procedures and management
• Training in Excise operations and management
Consultancy and advice Excise specialists are hard to identify, and in many cases are part of large management consultants or are individuals whose knowledge may be niche and limited. A new consultancy was established in 2021 specialising in Excise, Customs and VAT matters. This is eTAG (www.etradegroup. co.uk), the electronic Trade Advisory Group, born out of the Bonded Warehousekeepers Association (BWA), which has long covered the Excise Bonded warehouse sector, and which has expanded its remit to cover excise production operations as well as storage of excise goods. The consultancy was formed by Customs and Excise professionals, both from commercial and HMRC backgrounds. The consultancy advises and assists companies with the establishment and running of excise businesses, whether breweries, distilleries or bonded warehouses. This involves removing the hassle of adhering to the requirements
• Dissemination of information on government initiatives on Customs & Excise matters It is essential that excise traders keep informed about new guidance and compliance information for a smooth running and compliant excise business operation - and in order to maintain a good relationship with HMRC. The consultancy therefore maintains close links with HMRC and maintains databases on latest Excise and Customs guidelines and compliance information. Support The consultancy is available to talk with any individual or enterprise wishing to establish a brewery or distillery as well as companies already involved in the sector. Please contact eTAG: www.etradegroup.co.uk for further information or email Mark on: mark@portcullis-isc.co.uk
For advice on legal issues affecting your business, please contact SIBA Legal Helpline on 0845 6710277 North West Law firm LLP is a SIBA supplier associated and Silver Standard Sponsor. The firm has a team of specialists looking after legal requirements of clients in the leisure and licenced trade sector, with clients including Daniel Thwaites Plc and Titanic Brewery. Napthens manage the SIBA Legal Helpline which offers legal advice and guidance on a wide range of legal issues affecting your business, including: General commercial, intellectual property, corporate finance, dispute resolution and litigation, commercial property, licensing, employment law and HR advice. Any enquiry through the helpline will receive up to 1 hour of free legal expertise (if further work is required, you’ll be advised of the appropriate charging structure). Full details of the helpline can be found on the SIBA Members Toolbox.
www.siba.co.uk | SIBA Independent Brewer | Spring 2022
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