How To - Register/Get Legal with new MicroBrewery

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michking

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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!
 
There are a couple of threads on here about folks "going pro" but there isn't a specific how to.

A rough list (but not exact!!) follows:

It's something along the lines of identify location for brewery.
Speak to local authority about planning and Environment Agency about water usage and effluent discharge.
Local Authority may want planning permission or change of use which could lead you to need to pay business rates if it is based at your home assuming they would grant planning in the first place.
Env Health would inspect for hygiene and suitability of building and register you as brewing business. If you haven't already discussed with planners, Env Health being a local authority department usually mention it to planning.
Env Agency or water board would probably charge effluent rates for discharge.

You only need a personal licence to sell if you are selling directly to public in bottles or casks etc. If you restrict your sales to the licensed trade only you don't need a personal licence.

You don't need a premises licence unless you plant to sell directly from the premises or plan to offer tastings after a brewery tour.

You need to register with HMRC to pay your duty.

It sounds worse than it really is I suspect..... some say that the Local Authority Planners tends to be the most unnerving stage as they don't tend to know what they are dealing with and jump in at the deep end with change of use, business rates and the whole nine yards rather than viewing it as a paid hobby at home.

The Micro brewers Handbook is a jolly informative read but doesn't go into great detail about the regs.


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!
 
stuey said:
It's something along the lines of identify location for brewery.
Speak to local authority about planning and Environment Agency about water usage and effluent discharge.
Local Authority may want planning permission or change of use which could lead you to need to pay business rates if it is based at your home assuming they would grant planning in the first place.
Env Health would inspect for hygiene and suitability of building and register you as brewing business. If you haven't already discussed with planners, Env Health being a local authority department usually mention it to planning.
Env Agency or water board would probably charge effluent rates for discharge.

So.. how does it work when 'location' is my kitchen/backyard/garage, in rented house no less? :)
 
michking said:
So.. how does it work when 'location' is my kitchen/backyard/garage, in rented house no less? :)

You would need landlords permission before doing anything else.

If the answer is "go ahead" speak to the planners or env health next.

Env health may be a good starter for ten as they will advise you of their expectations in terms of sealed floors, washable walls, handwashing etc etc. It would certainly put you in the picture as to what alterations you may need to do at what cost and whether the landlord would agree to them.
 
sorry was not clear - was more asking if at all possible from a house - but your extra detail was great.

Ok - will go back to drawing board and read that book for now... thinking best option may be to have another local brewery do some batches for me till I have dedicated site/location (or at least own the house i'm going to have put money into to bring up to standard) :)

cheers again!!
 
It is possible from a house... There are a few who have done it successfully :) Whether they were tenants or owners I don't know.

Dronfield Brewer on here rents space and brewing time in a local brewery every week or so. The brewery wins as they make a bit of money on a plant that would otherwise be unused and Dronfield Brewer wins by being able to brew his own brews commercially without having to jump through all of the hoops as the brewery has already done that.

He remains responsible for running his own accounts with suppliers and HMRC for duty.

Search his user name and posts and his story is there to read.

There are a couple of other threads too but can't search for them on my phone.
 
The other question to ask yourself...this is the biggy...if you are supplying a pub, you will need space to store beer, this needs to be kept chilled...so you will need to keep empty casks somewhere and full ones in some sort of chiller...This is where I decided not to brew from home commercially, also brewing on a big scale does make a few smells...would your other half really want this?
 
Can you approach a local micro and get them to brew or you brew on their kit. As they are producing the beer they will have to pay duty before it leaves the door (or duty point) unless you and they are set up as a tax warehouse so you can transport the beer under duty suspence! So when you sell your beer from home you wont have to pay duty but the brewery might want you to pay before you take it from them.

As a small wholesaler you wont need to have a personal or premises licence if your selling to the trade but your location will have to be registered as a sole trader or ltd company.

Not all breweries keep their stock at 12c but its better that way, storage for 18-20 casks (4bbl brewery) is alot bigger than you think. You may also want to think about the damage you could cause by moving casks in and out of your house. Something that your landlord will have to know about (as well as starting a company check your contract).

An option would be to ask a micro if you can bottle their beer for them (or a brew you make at theirs), do the labor for them and all the work and ask to brand it as your own (as long as you mention them on the labels). Again they will have to pay the duty before you can take it away but they may be interested in someone giving it ago if they dont do it themselves.

I think contact your landlord and also planning to see what they want from you. Get yourself a basic food hygiene certificate. Any aspects of cleaning and requirements for a commercial kitchen will most likely be required in your brewery.

If you do get to install a small brewery you will need to register with HMRC to pay duty on all the beer you produce. You need to fill an EX46 every month (even if you dont produce anything) stating how much duty payable beer you have produced (sold / tasted / consumed). You will also have to declare any beer you have produced for personal consumption and pay duty on that as well. Only beer which has been destroyed (not consumed) is duty except. Any spoilt batches will have to be logged as such.

HMRC will ask for a plan of the brewery and where your fermenting vessels are and you are required to inform them if you move them, change capacity or get any more.

You will also have to keep all brewing records, goods in and out (grains / hops) as well as keeping your VAT in order even if you don't produce enough to be registered.

In terms on effluent / waste if the local authorities don't ask then don't worry about it too much. Equally your local council may which to know that you are destroying your waste grain so it can not enter the food chain OR that you handle the grain in such a way that you provide it to a registered receiver for animal feed. Most of this is just paper work CIP/HACCP etc. Or you can buy stuff from Murphy & Sons that you add to your grain to renders it inedible for animal feed.

Its not all bad news really, most of it is just paperwork to brew at home. I'd ask your local micro how they found it and get advice. Its likely that they have to deal with the same council inspectors and departments that you will have to deal with so it could be very useful.

Read the book that people are suggesting its really good and covers all the key points with some worthwhile case studies.

D
 
You will need to contact your water supplier. I doubt you would be allowed to use a domestic supply account for commercial brewing especially if you arent on a water meter.
 
hyperlink said:
You will need to contact your water supplier. I doubt you would be allowed to use a domestic supply account for commercial brewing especially if you arent on a water meter.

they tend to worry more about the effluent waste such as chemicals etc rather than water usage. By the sounds of the scale in question just dont take a bath and brew 100l extra a week! I suppose really you SHOULD contact them.... but your more likely to get stung on the waste side rather than the usage.

D
 
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).
 
rpt said:
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).

The exemption for experimental brews only stands if the brew is destroyed and not consumed.

I'm pretty sure there's a chap brewing commercially (legally) in his garage in Bristol. His garage is at the bottom of his garden in the city somewhere so it can be done. :) In fact, just checked google streetview and it definitely couldn't be described as remote! He must have struck lucky with the planners!!
 
I think you would have more problems with the landlord and his Mortgage company, and neighbours than actual planning.
 
stuey said:
The exemption for experimental brews only stands if the brew is destroyed and not consumed.
From HMRC Notice 226 Beer Duty:
17.4 Research and experiment
To qualify for relief, the beer must be brewed to test new brewing processes, equipment and ingredients. The relief can apply to trials by registered brewers who wish to test the suitability of new brewing methods or materials, and do not intend to sell the beer.
17.5 Disposal of beer produced by registered brewers
To qualify for relief from duty, you must not sell or give away any of the beer produced. You may conduct taste tests among your employees, but the beer must not be consumed in any other circumstances. Taste tests must not include prospective or actual customers. When the research or experiments are finished all the remaining beer must be destroyed.
 
rpt said:
stuey said:
The exemption for experimental brews only stands if the brew is destroyed and not consumed.
From HMRC Notice 226 Beer Duty:
17.4 Research and experiment
To qualify for relief, the beer must be brewed to test new brewing processes, equipment and ingredients. The relief can apply to trials by registered brewers who wish to test the suitability of new brewing methods or materials, and do not intend to sell the beer.
17.5 Disposal of beer produced by registered brewers
To qualify for relief from duty, you must not sell or give away any of the beer produced. You may conduct taste tests among your employees, but the beer must not be consumed in any other circumstances. Taste tests must not include prospective or actual customers. When the research or experiments are finished all the remaining beer must be destroyed.

Sorry RPT I misunderstood your post to mean you were saying the OP could brew beer for home consumption under the auspices of "Experimental Brewing"

I'm sure the HMRC would take some convincing that daily home consumption of an experimental beer was a taste test ;) :D
 
stuey said:
Sorry RPT I misunderstood your post to mean you were saying the OP could brew beer for home consumption under the auspices of "Experimental Brewing"
I was suggesting that that was the only way you could avoid duty for home brew if you were running a brewery business at home.
stuey said:
I'm sure the HMRC would take some convincing that daily home consumption of an experimental beer was a taste test ;) :D
I agree!
 
rpt said:
stuey said:
Sorry RPT I misunderstood your post to mean you were saying the OP could brew beer for home consumption under the auspices of "Experimental Brewing"
I was suggesting that that was the only way you could avoid duty for home brew if you were running a brewery business at home.
stuey said:
I'm sure the HMRC would take some convincing that daily home consumption of an experimental beer was a taste test ;) :D
I agree!


I think it would be a risky thing to do to try and avoid duty if it was your source of daily income.

Anyway the brewing costs for a 72 pint firkin including duty, raw materials, water and electric comes in at about 26 quid so still not horrendous! :)
 

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