How To - Register/Get Legal with new MicroBrewery

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michking said:
I searched and didn't find this. Is there a guide to getting legal/registering? I'm in the UK.

I assume something to the effect of 1) register business 2) Get alcohol (handling) licence 3) get license to sell (bottles/kegs only, no retail site/tap room)

I have some interest from a couple pubs and some local shops but no idea on how to do it all... thanks in advance!

A few years ago in my days as a Building Control Officer for the local authority I did encounter a home brewer that sold some of his product to a couple of local pubs and shops, from memory there weren't any great problems for the guy, from memory as long as the brewery is a hobby you are allowed to sell a certain amount of excess stock, I cant remember if he needed any sort of permission from the L/A or not, he did have to justify that his septic tank could cope with the additional volumes of water and that nobody was employed on the site or no members of the public visited the site as far as Building Regs were concerned he was free to carry on, I asume he had to keep records and accounts and pay any taxes due

Mike
 
rpt said:
the complete angler said:
from memory as long as the brewery is a hobby you are allowed to sell a certain amount of excess stock
I think this might apply if you are brewing cider but not beer.

There is no exemption from duty for beer where it brewed on any commercial basis for sale. A reduced rate of 50% applies up 60 000 hectolitres.

Duty exemption on cider allows up to 7000 litres to be produced per year duty free.
 
stuey said:
There is no exemption from duty for beer where it brewed on any commercial basis for sale. A reduced rate of 50% applies up 60 000 hectolitres.

50% relief only applys to the first 5000hl produced. After that its gets abit complex. Depends on your %/HL. But yes there is a relief up to 60,000hl.

D
 
Darcey said:
stuey said:
There is no exemption from duty for beer where it brewed on any commercial basis for sale. A reduced rate of 50% applies up 60 000 hectolitres.

50% relief only applys to the first 5000hl produced. After that its gets abit complex. Depends on your %/HL. But yes there is a relief up to 60,000hl.

D

That will teach me for trying to multi task!! Navigating on the M25 en route to Hitchin and posting on the forum!!
Concentrate on one thing at once and get it right Stu! :D

Thanks for correcting my error Darcey :D :thumb:
 
have read the book... my idea to go legal for public sales is very much in doubt.

If I do want to supply anything to the public I'll be going to established brewery and have them make for the foreseeable future... in the end I think a brew-pub is best option and will need a lot of ££££!!
 
rpt said:
You'll need planning permission for change of use if you are running a business at home. You'll also need to ensure that your household insurance covers you - and so will your landlord. As you will be receiving deliveries and despatching finished products I would have thought you would struggle to get planning permission in a normal residential area. I know people have set up breweries in their garages but were they isolated and not in a regular street?

The other thing that people don't realise is if you register your home as a brewery with HMRC you will have to pay duty on all your home brew too (although you might be able to get an exemption for experimental brews).

Hi,

I investigated this with my local planning people about a year ago, and posted my experience on the other site. This is what they said:-

"Thank you for your enquiry concerning the above premises and the use of your garage as a microbrewery.

In relation to your enquiry in the first instance I would need to assess whether planning permission would be needed at all. Some activities can be undertaken in planning terms as being incidental to the enjoyment of the main dwelling on the site, as any hobby would be. When this hobby becomes more of a commercial operation planning permission may be needed, but this is dependent on the scale and nature of the use. (My italics)

To help me respond to whether planning permission is needed would you be able to answer the following questions for me?

- what would be the likely number of collections and deliveries per week from the site in relation to goods to be sold, deliveries of supplies and collection of trade waste?
- would there be any access for the public to this site for sales on site?
- would there be any advertising on the garage indicating there is a business on the site?
- would all brewing materials and equipment be within the garage or would the land around the garage and in the garden be used on a permanent basis?
- how many people would be working on the site at any one time?

These questions will help me to assess the scale of the proposed use. The lower the scale and intensity of the use the less likely permission would be needed.

Once I have received a response from you on this matter I can go on to provide further advice on the likelihood of permission being granted, the relevant planning policies and how to apply.

As the area is mainly residential I would have some concerns at an intensive commercial use on the site, but perhaps if you can provide answers to the above first this will help to see what needs to be done next.

I hope you find this advice of assistance. However, please remember that the advice given in this letter is based on the information submitted, a full planning history has not been researched and is the opinion of the case officer and cannot in any way prejudice the decision made on a formal planning application(s)"

MY REPLY

I wrote back saying I wanted to make 100gallons a week:

" - Thank you very much for getting back to me. Your reply is very helpful.

I would estimate, given the small scale of production I am thinking of ( about 100 gallons a week), that I would need 75 - 100Kg of malt a week, which is 3 to 4 sacks, which is one small vehicle per week for deliveries. This would consume about 1 Kg of hops, which would come in 5kg bags, via parcel post to the main house. Other sundries would be needed.

100 gallons would be enough to fill 11 firkins, ( which is the size of barrel you see outside most pubs ) or the equivalent in bottles. These would need to be delivered, and I would guess that would take a few journies in a small vehicle.

I'm not sure about trade waste. The spent malt would be the most significant.

I have no plans for public access

I have no plans for advertising on or around the building

All brewing materials would be kept in the garage, although I could keep the malt in an adjacent shed, which would mean I could store sufficient for a few weeks there, and cut down on deliveries. The hard standing in front of the garage - which is shielded from the road by a pair of 6 foot high solid gates, and on either side bu a high hedge/fence would be used at times for general washing of equipment, etc.

There would generally only be me working on the site, although I am sure that from time to time, friends and relatives would come along to lend a hand. I don't imagine I'll be doing this full time.

I hope this is helpful. I look forward to your reply."


PLANNERS RESPONSE

"Thank you for this additional information. Based on the information you have given below you would not in my opinion need planning permission as the use would not be to a level that was intensive enough to lead to a change of use. The scale of what you are proposing to do would not be that significantly different from a hobby. If the way you want to operate this ever changes you may need planning permission, at which time I would encourage you to contact the Planning department and we can provide further advice.

At present though, based on this information there would not be a material change of use in my opinion, and so planning permission would not be required."

MY THOUGHTS

So, that is a "back of the envelope" scheme, which indicates that the planning hurdle can be jumped (or avoided)if things are on a small scale- although things may vary from planning area to planning area.
Hope this is helpful,


Simon.
 
That has made my idea of pumping out a couple hundred bottles a week from my garage even more feasible!
 
I'm in the process of 'getting legal' so that I can brew to supply a couple of the local pubs with my ales. My capacity is 18 gallons and brewdays will be Saturdays and Sundays only (as I still intend to stay in my full-time job in the civil service). The local authority has been very helpful and I received a phone call at work last week from the Planning Permission people. I was asked a couple of questions regarding size of casks and also if there would be dray trucks picking up my products. As I said I would be delivering the firkins myself (in a trailer on my bicycle) and the deliveries of grain, etc. would be in vans, they (tentatively) said that I wouldn't need any Planning Permission as it would be an extension of my hobby. The chap was just then going to confirm this with his Team Leader and said that next week I should be hearing from them. When I get the 'all clear' from Gosport Council I will then contact HMRC to register as a brewer and ask them the routine for paying the 'duty' per brew. I'll post back here on this thread as and when I get replies, etc.

I don't envisage running Newtown Brewery http://www.newtownbrewery.co.uk as a full business just using it to allow the 'fruits' of my hobby to be available to the public to sample. I fear I may be busy at the weekends, though, as the landlord at my local (within 1 minutes' walking distance) has said she would like a 3.8 'session' beer to replace Youngs' bitter....and she gets through three 'nines' a week!!

In the meantime I'm also in the process of converting my utility room into the brewing room (man cave) see this thread http://thehomebrewforum.co.uk/viewtopic.php?f=13&t=39915
 
Thanks for that information on planning permission. It's good to know that the rules are very sensible - a business at home is not a problem as long as it has minimal impact on the residential area. Now, how many gallons a week do I need to brew to make a living out of it?!
 
revival of thread as we are nearly about to exchange on a house (!) with a double garage already split with one side nearly a finished room - ideal for a brewery!

I'll be contacting the council shortly to get their thoughts, assuming it's an 'extension of my hobby' and no major red tape (except of course HRMC) then I hope to be legal to sell in the future...

Question 1 - for the foreseeable future the majority would still be personal use only. would It make sense to buy from separate suppliers for HRMC and keep personal beer off the records? I'm not trying to cheat the system, but at same time with such a small operation I'm not sure how to avoid paying tax on beer bound for my belly! :)

Question 2 - any resources/recommendations/links on home builds would be appreciated. I still have a lot more questions than answers on what I end up with (assume 3 x 100l SS with electric elements for HLT and boiler). Not sure for instance if going with pumps or gravity best, what kind of automation I may want etc etc...
 
If you are brewing for sale and for personal consumption in the same registered premises then all production is liable for duty, and must be accounted for and reported.

Of course as you are a new 'commercial' brewer then your ullage will obviously be higher than an established brewer ;) :whistle: :whistle: :whistle: :whistle: :whistle:
 
Aleman said:
If you are brewing for sale and for personal consumption in the same registered premises then all production is liable for duty, and must be accounted for and reported.

Of course as you are a new 'commercial' brewer then your ullage will obviously be higher than an established brewer ;) :whistle: :whistle: :whistle: :whistle: :whistle:

This was my thinking... what I did wonder is if you could register the garage for the brewery and then brew from the house - or does it have to be a residential type address - ie house and garage all encompassed in one :wha:
 
Hawks said:
Aleman said:
If you are brewing for sale and for personal consumption in the same registered premises then all production is liable for duty, and must be accounted for and reported.

Of course as you are a new 'commercial' brewer then your ullage will obviously be higher than an established brewer ;) :whistle: :whistle: :whistle: :whistle: :whistle:

This was my thinking... what I did wonder is if you could register the garage for the brewery and then brew from the house - or does it have to be a residential type address - ie house and garage all encompassed in one :wha:


Pour yourself a pint, or two, sit back and have a read of this doc, straight from HMRC, everything you wanted to know about beer duty & more:

http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_CL_000232
 
Apart from the tasks of registering, paperwork, paying duty and accounting for income & expenses and personal taxes for a small brewery do you just operate as a sole trader (unless you exceed the VAT threshold at which point I assume you go Ltd)?

Are there any health & hygiene issues with producing beer for public consumption? Do you need any training/certificates or conditions imposed on the brewing area? What about dreaded health & safety and insurance, anything required there? Is third party liability a mandatory requirement if for instance you drop a bottle or keg on someones foot whilst in transport, or a bottle explodes injuring someone? What happens if you unintentionally poison someone, or a bunch of people with a bad batch? Do you need business insurance cover when transporting goods around in a vehicle?
 
you certainly need environmental health certification to produce anything for consumption, beer included. It should be possible to brew for your own consumption without paying duty, HMRC will probably require you to keep 2 sets of records for both commercial and personal in that case.
 
It will be all taxable I believe.

You can claim some product as 'destroyed' but only a very small percentage, you do not have to declare this on your duty return but are expected to keep all records including why the beer was destroyed and who destroyed it. In terms on ullage you need to have £50+ of duty to 'reclaim' or not pay before you can claim it back (or not pay on your monthly return), if you have £49 of duty to reclaim by the end of the month then you have to pay it anyway. In other words something like 2 9g casks is around £50ish. If you do 'ullage' beer it has to pass the duty point 'be proven as sold and duty payable' then 'returned' and 'destroyed' as in not drunk. If any is consumed then you have to pay duty.

You will be expected if audited to prove where your beer has gone ie brew records show x Malt used to created y bottles of beer - (a destroyed/ ullaged beer - b sold) = 0 (or what you have in stock).

Audits are rare but the fines are big.

As suggested give them a call and if you can negotiate the phone system ask someone get their name and email/contact to clarify in writing.

As for planning if you are using a garage then beer produced outside of that would not be duty payable but that would mean you cant ferment / store volumes of the beer there. If you can figure out a good way of showing on paperwork how this is to be done they I am sure you can rest some of your concerns to bed with HMRC.



D
 
adomant said:
you certainly need environmental health certification to produce anything for consumption, beer included. It should be possible to brew for your own consumption without paying duty, HMRC will probably require you to keep 2 sets of records for both commercial and personal in that case.

I think this depends on your local Environmental Health people and the intended scale of your set-up. Gosport's, for-instance, where very helpful to me (as I will be small-scale) and stated that 'because the final product is boiled' (sic) there was no need to register with them and they would just 'bin' my application. The lady did say, however, that as she was a bit of a 'beer enthusiast' herself that she would like to come and take a look at my set-up when it was finished ('all unofficial'). If you where going for a larger-scale set-up then, obviously, EH would get involved (re: storage of dry grain, removal of used grain and hops, effluent, etc.)

I would imagine, as well, if you are going to produce on a larger scale, and start employing other people to help, then there would also be Health & Safety 'hoops' (rather than Environmental Health) to jump through as you would be liable for the safety of your employees.

Update on my set-up: electric ring main fitted, just waiting on the sink and plumbing, then I can start running some test-brews. (Control Panel build - next year)

Newtown_corel_plans_zps9b59d8b1.jpg
 
Reading through that exciting HMRC document, I found this:
"If you fail to provide a guarantee, you will be required to pay the duty due when the duty point occurs, that is, as soon as you produce beer, rather than delaying payment of the duty until the 25th day of the following month."
I was casually interested in a clear definition of when beer has been "produced".
Is it:
A - Once the yeast is added
B - Once it is done fermenting and alcohol has been produced
C - Once it is racked into barrels or bottles
D - Once it is conditioned and ready for sale/consumption

I am leaning towards assuming option C, as this is the first time that an accurate volume can be calculated. Could be wrong though...
 

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