How To - Register/Get Legal with new MicroBrewery

[Darcey]

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...

C is pretty usual way of doing it. However if your duty point is your front door then you only pay duty once it has left the building rather than as you are producing it. At least that way you get cash up front before your tax bill.

D

 

[Algernon]

C is pretty usual way of doing it. However if your duty point is your front door then you only pay duty once it has left the building rather than as you are producing it. At least that way you get cash up front before your tax bill.

D

Cheers D :

 

[Darcey]

Just to clarify at the point or racking you on your brew record are declaring how much beer you have produced and expect to sell (or pay duty on). You only 'pay' duty on what ever has left the building / passes the duty point.

 

[Rolfster]

Just found my self reading this after a drunken chat in the pub. It seems my partner in crime is going to be building a large shed for brewing at his house in a year or so.....

 

[Cornish Knocker]

What a great and interesting topic. I would just like to say the best of luck and keep the dream alive.

Red tape is frustrating, but there is always a way round it, just keep smiling and focus on the end product.

Although possibly pricy I found this years ago when I had the idea of opening up a small garage brewery, but emigrating to Italy put a stop to it. http://www.brewlab.co.uk/trainingcourses.asp.

Good luck and keep us all informed on the progress.