New digital service launched to ‘simplify’ alcohol duty payments

HMRC has announced a new digital service for paying alcohol duties, which the agency says will “simplify and modernise” the processes for alcohol duty approvals, returns and payments.

In an email to stakeholders, HMRC said it would write to approved producers of alcoholic products to tell them about the new digital service, which is expected to be launched in March 2025.

In the email, HMRC said:

“Using the digital service will make it simpler, quicker, and easier for domestic producers of alcoholic products to account for and pay the duty they owe, across all types of alcoholic products.

“HMRC will share further details on the new digital service closer to its launch date, including details on how to access it.”

Benefits

The service is expected to include benefits such as:

·         Single digital approval for all producers of alcoholic products

·         Single digital return covering all alcohol duties due for all alcoholic products, across all of a producer’s sites

·         Standard return period across all regimes

·         Standardisation of dates to provide the returns and pay the duty

Suzanne Alecrim, a customs expert at the Chartered Institute of Export & International Trade, said:

“The introduction of the digital service is the second part of the new system that has been brought in under alcohol duty reform.

“New draft legislation is being finalised in the form of the Alcoholic Products (Excise Duty) (Amendment) Regulations 2024, which will bring administrative benefits, such as the standardising and digitising of the approvals process and the launch of this digital service.

“These latest changes are welcomed by industry and will bring about greater efficiencies for producers and warehouse keepers when it is launched in March 2025.”

Duty review

The move was made following an industry consultation and follows a duty review launched in August 2023.

At the time, the government said this was the biggest change in alcohol duty in 140 years and saw reduced rates for draught products, a small producer relief and new rates based on alcohol content.