Beer Duty is chargeable on beer with a strength of more than 1.2% alcohol by volume (ABV). The description of beer includes ale, porter, stout, any other description of beer, and anything else made or sold described as beer or a beer substitute, including beer mixed with non-alcoholic drinks such as a shandy.
Brewers and their production premises must be registered with HMRC. HMRC’s Notice 226 entitled Beer Duty gives guidance on the production, storage, and accounting for duty on beer.
The notice includes general information on:
- Registration of brewery premises
- Holding beer in duty suspension
- Measurement of quantity and strength
- Records to be kept
- Relief from duty
- Additions to beer
- Exports and drawback
- Other procedures and requirements.
A new version of the notice was published on 20 December 2021.
Changes to the soft drinks levy
The Soft Drinks Industry Levy (SDIL) was launched in April 2018. The Levy, unofficially known as the ‘Sugar Tax’, has been put into effect to help combat the excess use of sugar especially by children, and to tackle childhood obesity.
There are two rates, a standard rate (18p per litre) applies to drinks with sugar content between 5 grams and up to (but not including) 8 grams per 100ml and a higher rate (24p per litre) applies to drinks with sugar content equal to or greater than 8 grams per 100ml. Over 90% of net liabilities were declared at the higher rate, in both quarters.
The SDIL returns are for fixed reporting periods ending June, September, December, and March. Both the return and payment of the levy must be made within 30 days of the end of each reporting period.
HMRC’s guidance on the levy has been updated to include new information about penalties for inaccuracies in a return.
MJB Avanti offer specialist accounting services to the hospitality industry, if you need our help to achieve your business goals in 2022, get in touch 08000 388799
Source : Informanagement