Notice

Cider production in the UK

Updated 25 March 2024

This notice explains the legislation and regulations for cider production. This includes information on how to become registered as a producer of cider, record keeping requirements, reliefs, duty-suspended movement requirements and accounting for Alcohol Duty.

1. Introduction

1.1 About this notice

This notice explains the effects of the law and regulations covering the production, storage and accounting for duty on cider and perry.

Where we say ‘cider’ in this notice, we include perry and pear cider.

As this notice contains various technical terms, you may find the glossary helpful — read section 29.

The effects of the law and regulations covering the handling of cider in excise warehouses are explained in receive goods into and remove goods from an excise warehouse (Excise Notice 197).

1.2 Who should read this notice

It’s primarily intended for commercial cider makers. If you produce cider solely for your own personal consumption and do not sell or receive a consideration for any of it, this notice does not apply to you.

1.3 Finding the relevant law

You’ll find the main legal provisions relating to the production, holding and movement of cider in the:

  • The Finance (No. 2) Act 2023

  • The Alcoholic Products (Excise Duty) Regulations 2023

  • Cider and Perry Regulations 1989 (SI 1989/1355)

  • Cider and Perry (Exemption from Registration) Order 1976 (SI 1976/1206)

Other legislation may also apply to cider makers. This includes the:

  • Customs and Excise Management Act 1979

  • Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150), which cover the keeping of records

  • Excise Goods (Holding, Movement, and Duty Point) Regulations 2010, which cover the intra EU movement and storage of goods

  • Excise Goods (Drawback) Regulations 1995 (SI 1995/1046)

1.4 Further information

If you need any advice, you should contact the excise enquiries helpline.

Sometimes the law says that detailed rules on a particular matter may be set out in a notice published by HMRC. Paragraphs 5.13 6.2, 6.3, 10.1, 11.3, 11.8, 11.12, 13.7, 13.8 and 13.13 have legal force and are indicated by being placed in a box.

2. The basics

2.1 What cider is

In the Finance Act (No. 2) 2023, ‘cider’ is defined as a product which:

(a) is obtained from the fermentation of apple juice or pear juice,

(b) has been produced without the addition, at any time, of:

  • (i) another alcoholic product, or

  • (ii) anything, other than a permitted substance, which communicates colour or flavour, (read paragraph 5.5 and section 25).

(c) satisfies the juice content requirements, and

(d) is of an alcoholic strength of less than 8.5%.

In addition, the cider definition provides that ‘the pre-fermentation mixture satisfies the pre-fermentation requirement’ and the cider ‘satisfies the final product juice requirement’ — for further details read section 28.

2.2 How the duty system works

If you produce cider for sale you must be registered with us for Alcohol Duty purposes, unless you qualify for exemption — read paragraphs 3.1 and 3.10.

Cider:

  • becomes liable to duty when it is made (that is, when its strength exceeds 1.2% alcohol by volume (ABV)) or imported into the UK or moved from Great Britain (England, Scotland and Wales) to Northern Ireland — read section 5

  • can be held on or, in certain circumstances, moved between registered premises or to excise warehouses in duty suspension — that is, without payment of duty but always remaining liable to duty

Duty:

  • is charged on the litres of pure alcohol within the cider and the alcoholic strength (ABV) of the cider — read section 5

  • is normally calculated by reference to the quantity and alcoholic strength stated on the package label or invoice — read sections 8 and 9

  • becomes payable when cider is released from or consumed in registered premises or excise warehouses — read section 5

  • may also be paid on the constructive removal of cider held in duty suspense on registered premises — read paragraph 5.13

2.3 How to calculate the duty

You must:

  • keep records of all cider produced

  • keep records of all cider leaving registered premises, or otherwise passing the duty point — read paragraphs 5.8 and 5.13

  • calculate duty due on all cider released for home use — read section 5

  • keep records of all cider destroyed — read sections 11and 13

  • complete a monthly duty return and send it to the TAPS and CCL Cumbernauld Accounting Team — read paragraph 7.11

  • pay the duty by the due date by one of the methods described in paragraph 7.10

  • keep a record of any Excise Duty off-set calculation you have made — read receive goods into and remove goods from an excise warehouse (Excise Notice 197)

  • complete a duty account and transfer the appropriate totals to a ‘monthly return’ — Wine, cider and other fermented products (EX606)

2.4 Your responsibilities

You must exercise control over your cider making activities. Unless exempt from the requirement to be registered (read paragraph 3.10) you must:

  • register your cider premises

  • make entry of your cider premises

  • maintain your business records to acceptable standards

  • render returns as required and pay any duty owing no later than the due date

  • comply with the requirements of this notice

You must also register for the Alcohol Wholesaler Registration Scheme (AWRS) if you sell duty paid alcohol to another business. It’s the responsibility of any business who purchases alcohol for onward sale or supply to check that the wholesaler they purchase from has been approved by HMRC.

Therefore, from April 2017, any business purchasing cider for onward sale or supply from you should check that you’ve been approved as an alcohol wholesaler. To apply for approval, read Excise Notice 2002: Alcohol Wholesaler Registration Scheme.

However, the AWRS only applies to registered cider makers. If you’re a small cider maker and exempt from the requirements to register as a cider producer (read paragraph 3.10) and pay Excise Duty on what you produce, then you’re not required to be registered for AWRS. Paragraph 5.1 of Excise Notice 2002: Alcohol Wholesaler Registration Scheme explains further on why you would be outside the scope of AWRS.

Your customers may ask for evidence that you’re a small cider maker and therefore purchases made are not within the scope of the AWRS. An example of this evidence could be the acceptance letter we issue when a cider maker claims exemption from registration (read paragraph 3.11).

2.5 Visits by HMRC

We’ll make visits to make sure duty is being correctly assessed and accounted for on all cider leaving registered premises. Assurance is based on auditing your commercial, accounting and management control systems and on physical checks. We’ll carry out physical checks on production, stock and movements of cider in duty suspension.

When we intend to carry out our checks, we’ll normally make a prior appointment. Occasionally, we may make visits without appointment, but the attending officer will give the reason for the unannounced visit. At any reasonable time, you must permit our officers access to any area of the registered premises. You must make sure that all your security personnel are aware that we may visit without appointment. All of our officers carry identification and will show this when they arrive.

If you fail to comply with the law and regulations relating to this notice (read paragraph 1.4) or do not account for the correct amount of Excise Duty, we may take action including the issue of assessments and or civil penalties. These are explained in Excise Assessments Interim Guidance and Notice 209: civil penalties: fixed, geared and daily.

You may also be liable to penalties if you fail to apply to register with HMRC at the right time or if your monthly duty return is inaccurate — read paragraphs 3.14 and 7.7. In many cases you’ll have the right to appeal. Full details of the appeals procedure are set out in section 27 of this notice.

3. Registration

3.1 Do I need to register

You must register if:

  • you make or propose to make cider for sale

  • your total production — including cider for your own consumption — in any rolling period of 12 consecutive months either exceeds 70 hectolitres (7000 litres), or is likely to do so

You must also advise us if you render cider sparkling (read section 5), unless you intend to carry out this process in an excise warehouse. You may produce cider and render cider sparkling on the same registered premises.

Changes in ownership

Registration will not transfer to the new owner of a business where both of the following apply. The:

  • existing registered cider maker business is to be sold or transferred as a going concern (including all assets, liabilities, and obligations)
  • sale is from one legal entity, to be carried on as a business in the name of another legal entity

For example, a sole proprietor might sell to:

  • another sole proprietor
  • a partnership
  • a limited company

The new owner must:

  • make sure that any necessary registration, is in place before the sale or transfer takes place
  • where required, apply for registration

The new owner should apply at least 45 days before the date they need registration. This is the date the business changes ownership. This is unless HMRC allows otherwise.

They should apply by:

  • using form CP30
  • providing detail of the original owner’s registration

Once the original owner is aware of who the buyer will be, they should notify HMRC in writing that they intend to sell their business by contacting Excise and gambling duties enquiries.

HMRC reserves the right to ask for a different application arrangement to the one described in this notice. This may occur where HMRC is satisfied that the new owner has already passed the necessary checks to hold the registration. An example could be the transfer of an existing registered premises (or whole business) between 2 different registered cidermakers. In such cases HMRC will discuss any revised arrangements directly with the new owner.

At the point that new registrations apply, we will cancel those granted to the original owner before the transfer. We’ll co-ordinate with the new and original owners make sure this happens at the point that ownership changes.

New owner obligations

As a new owner, you must be registered to produce cider as set out in this notice. If you are not registered, then: 

  • any cider in your possession could be liable to forfeiture
  • we will assess you for any excise duty due on cider which you produced and held whilst not registered
  • we may issue you with a financial penalty for breaching registration requirements
Changes in an approved limited company’s ownership

A limited company’s existing cider registration will remain in force if the actual registered legal entity remains the same after a change of ownership. For example, this could occur following a complete transfer of company shares.

If we have concerns that the new owner would not meet the usual background checks we would carry out on a new cider maker and there is insufficient assurance around the registration, we will consider:

  • cancelling the existing registration of the limited company
  • adding conditions and restrictions to the registration to limit any new risk identified

We advise new owners to contact HMRC for advice before the change of ownership. We ask you to be ready to share existing registration information held by that company. 

If you are unsure whether you need to make a new application, contact Excise and gambling duties enquiries in advance of any sale or transfer

Changes to persons with significant control and other key persons in a limited company

In this notice, a person with significant control (PSC) is someone who holds: 

  • more than 25% of shares in the company
  • more than 25% of voting rights in the company
  • the right to appoint or remove persons from the board of directors

You must tell HMRC where there is:

  • a significant partial sale in shares, creating a new person with significant control
  • any change to directors and company officials

If we have concern following any such, change, we will consider:

  • cancelling the existing registration of the limited company
  • adding conditions and restrictions to the registration to limit any new risk identified.

If you are unsure whether you need to make a new application, contact Excise and gambling duties enquiries in advance of any sale or transfer. 

Financial security required by HMRC

The new legal entity must make sure that any financial securities required are in place when they take over the business.

3.2 How to register

Register as a cider or perry maker (CP30).

You can either submit the form online or fill in the form on-screen.

Submitting the form online

Submit the form online and send entry of your premises (read paragraph 3.4) as soon as possible by post to:

HMRC
Excise Processing Teams
BX9 1GL

You’ll get a reference number when you submit the form online which you should include with your entry of premises.

You have 15 working days from when you submit your online application to send us the entry of premises. If you do not, we’ll be unable to proceed with your request, meaning you’ll have to resubmit it and this will be treated as a new application.

Filling in the form on-screen

Fill in the form on-screen, print and post it along with entry of your premises as soon as possible to the same address noted in the ‘submitting the form online’ section.

If you have an enquiry about your application once it has been sent, you may contact the Excise Processing Teams (EPT). For any enquiries before this stage, you should contact the excise enquiries helpline.

A separate registration is required for each set of premises at which you intend to make cider. A certificate of registration will be issued in the name of the proper legal entity (for example, sole proprietor, partnership, limited company). However, you may choose to submit only one duty return for all registered premises owned by the same legal entity — read paragraph 7.6.

All cider makers applying for registration for the first time are required to arrange for a guarantee to cover any duty due on cider, removed from your registered premises to the UK home market, until it is paid to HMRC — read section 4.

In some cases, it may take up to 45 days to process your application.

3.3 What registration allows you to do

As a registered cider maker you’re allowed to:

  • produce cider on your registered premises

  • carry out all operations and procedures set out in this notice, including the removal of duty suspended product to other appropriately approved UK warehouses — for Northern Ireland based registered cider makers, you can also remove duty suspended products to appropriately approved EU warehouses

  • store, in duty suspense, on your registered premises cider produced at those premises

  • receive cider in duty suspense from other appropriately approved warehouses for further processing

  • receive back your own product from other appropriately approved warehouses (that are, approved to receive cider) where it has undergone further processing, for example aeration, pasteurisation and bottling

Registration does not allow you to:

  • receive cider, not previously produced on your registered premises, in a ready for sale state from other registered premises or approved warehouses

  • receive spirits, wine or beer

If you wish to receive spirits for fortification you must apply for approval as a Trade Facility Warehouse — read registration and approval of excise goods held in duty suspension (Excise Notice 196). Note that the final product cannot be classed as cider for duty purposes — read paragraph 5.5 and Excise Notice 163: wine production. Equally, any quantity of cider that may be found to have reached 8.5% ABV or more cannot be classed as cider for duty purposes and must be dealt with under the terms of Excise Notice 163: wine production.

3.4 How to ‘make entry of the premises’

As part of your application for registration, you must make entry of the premises you intend to use.

An entry of premises is a plan showing the position and description of each vessel or other piece of plant you intend to use in the production of cider and where the cider is to be stored. It should include any identifying marks on your vessels or plant and the full address of the premises, and should be sent to the EPT along with your application for registration. The plan must be A4 size or less and in black and white with duty suspended areas shaded accordingly.

You’re not required to make an Excise entry of your premises if the cider you produce is not for sale or if you’re exempt from registration — read paragraph 3.10.

Retail premises, within or attached to your registered premises, are not considered part of the registered premises. Any cider to the retail premises will have to be duty paid on removal from the registered premises.

3.5 Using your entered premises for other Excise trades

You may use your premises for other Excise trades (for example, a compounder of spirits) provided:

  • you’re properly licensed or registered to carry out that trade

  • you observe all the requirements set out in the appropriate notice and any additional restrictions or conditions imposed by us

  • your working practices and records readily identify the particular trade being carried out in any room, vessel or piece of equipment that can be used for 2 or more trades

3.6 Changes affecting your registration particulars

You must write to the EPT (read paragraph 3.2 for the address) giving details of any changes that may affect your registration, check paragraph 3.9 for more details.

The following changes would require a new application and entry of premises to be submitted:

  • change of legal entity, for example, formation of a limited company

  • change in the ownership or control of your business, check paragraph 3.1

It may take up to 45 working days to process your new application, so notify the EPT of any changes as soon as possible.

The following other changes must also be notified in writing:

  • change to partner details

  • change to director details

  • change of address of your registered premises — entry of premises would also need to be submitted

  • cessation of production

  • the production of other excisable goods on your premises

  • financial difficulties/impending insolvency

  • you become VAT registered or deregistered

It may take up to 15 working days to make changes to your current registration, so notify the EPT of any changes as soon as possible.

3.7 What happens after you’ve applied for registration

Your application will be vetted and is subject to background checks. Should these checks provide insufficient assurance that the business is suitable for registration, further information may be requested. Until this information is received, your application will be put on hold. A visit to your place of business may also be required.

If we accept your application, we’ll issue you with a Certificate of Registration, which will confirm the date of registration plus details of any conditions that we have placed on your registration. You should keep the certificate on the premises to which it refers and make it available to our officers on request.

Acceptance will register your premises as a tax warehouse but not as an excise warehouse. Information on excise warehouses can be found in registration and approval of excise goods held in duty suspension (Excise Notice 196) and receive goods into and remove goods from an excise warehouse (Excise Notice 197).

If we refuse your application, we’ll inform you in writing and give our reason or reasons. We’ll offer you a review of our decision or you can appeal direct to the independent tribunal — read section 27.

3.8 How long your registration will last

Registration will last until production has ceased. You must notify us in writing:

  • if you intend to cease production

  • when you’ve actually ceased production

If you sell your business, your registration may not transfer to the new owner. Check paragraph 3.1.

3.9 Ceasing production

After production has stopped and your cider is finished and packaged (read paragraph 21.3) you’ll have to pay the duty due on:

  • any remaining stock in hand

  • any unexplained shortages

Alternatively, we may allow you to destroy the cider stock in hand as if it were unfit for sale. If you wish to do this, read paragraph 11.7. However, duty must still be paid on any unexplained shortages.

When we’re satisfied that you’ve accounted for all duties and or destroyed your stock of cider, we’ll cancel your registration and your entry of the premises.

3.10 Claiming exemption from registration

You may claim exemption if:

  • you make, or propose to make, cider (including sparkling cider) for sale

  • your total production — including cider for your own consumption — in any rolling period of 12 consecutive months does not exceed 70 hectolitres

Temporary arrangement for small cidermakers

From 1 August 2023 Alcohol Duty is worked out based on the litres of pure alcohol in cider.

You’re exempt from registration as a small cidermaker if you produce less than 70 hectolitres of cider in a year. This means you do not have to pay Alcohol Duty.

From 1 August 2023, the charge to Alcohol Duty for all producers will be linked to the production of alcohol. This means that all cider produced is liable to duty.

So, a temporary arrangement is in place until the new alcoholic producer approvals come into force. This means that any cidermakers who are exempt from registration (because they produce less than 70 hectolitres of cider) will not have to pay Alcohol Duty.

This exemption will continue until the new administration system for returns, payments and authorisations is live in 2025.

When the new approvals system is live, small cidermakers will need to be approved by HMRC in order to produce cider.

All cider produced will be liable to Alcohol Duty, but the rate of duty will be nil if the total amount of alcohol in all cider you produce is less than 5 hectolitres under Small Producer Relief (SPR). This will continue unless you expand your production into the next SPR band.

3.11 To claim exemption from registration

Complete the form claim for exemption from registration for Cider Duty (CP33) and send it to the EPT (read paragraph 3.2 for the address).

3.12 What to do if you’ve claimed exemption and think your production will exceed 70 hectolitres

If your production level exceeds or is likely to exceed 70 hectolitres in any rolling 12-month period, you must apply to be registered — read paragraph 3.2. You must apply for registration within 30 days if you’ve exceeded the 70 hectolitres.

3.13 What to do if you’re registered and your production level falls below 70 hectolitres

If your production level falls below 70 hectolitres in any rolling 12-month period, you may cancel your registration and claim exemption — read paragraph 3.11.

3.14 Production by unregistered persons or on unregistered premises

Except where registration is not required (read paragraph 3.10), it’s an offence to produce cider if:

  • you’re not registered

  • the premises are not registered

This offence carries a penalty. You can avoid a penalty by applying for registration at the correct time. If you’ve not applied for registration, you must notify us as soon as possible. Depending on the circumstances, we may be able to reduce the penalty.

Further information on penalties.

You have the right to appeal if we impose a penalty. For further information on appeals, read section 27 and the following link.

How to appeal against an HMRC decision — indirect tax.

4. Financial security

4.1 What is financial security

For the purpose of this notice, financial security is a guarantee given by an approved guarantor (for example a financial institution) who undertakes to pay money to us in the event of an irregularity covered by the guarantee. Guarantees are the only form of security acceptable to us.

4.2 When a guarantee is required

Depending on the circumstances, we may require a guarantee to safeguard the duty on the following:

A guarantee is required for all duty suspended movements of cider between Northern Ireland and EU countries — read paragraph 4.3 and receive goods into and remove goods from an excise warehouse (Excise Notice 197).

A guarantee may be required for movements of cider within the UK — read paragraph 4.3).

A guarantee may be required if you wish to defer payment of duty, that is, for cider that has been produced in the UK and has passed the duty point but for which duty has not been paid to HMRC, although you may be eligible for exemption under the Excise Payment Security System (EPSS) — read paragraph 4.4.

4.3 To arrange for a movement guarantee

If you’re moving goods between Northern Ireland and an EU country you will be required to provide a movement guarantee. If you’re only moving goods within the UK we may request a guarantee in certain circumstances — refer to section 10 of receive goods into and remove goods from an excise warehouse (Excise Notice 197) and then make a request in writing and send to:

HMRC
Financial Securities Centre
BX9 1GL

Once we have agreed your guarantee amount, we’ll issue the draft wording to your guarantor for completion of the guarantee form and return to the EPT. If satisfied, we’ll accept the guarantee and return a signed copy to the guarantor. We’ll write to you to confirm the guarantee has been approved.

4.4 When a guarantee to defer payment of duty is not required

You’ll not be required to provide a guarantee if you’re eligible for authorisation under EPSS. Where an eligible business is approved for EPSS, they may defer payment of duty without providing a guarantee — read paragraphs 4.4.1 and 4.4.2.

4.4.1 EPSS authorisation criteria

To be eligible to apply for EPSS you must have been VAT registered for 3 years or more. If so, you’ll be assessed against the full EPSS authorisation criteria which include checks on your VAT, excise and debt compliance history.

If you’re trading beneath the VAT registration threshold you’re eligible to apply for EPSS if you’ve been registered in an excise payment regime for 3 years or more. In this case, you’ll not be assessed against the full EPSS eligibility criteria but instead checks will be made on your excise return, payment and debt compliance history.

Full EPSS eligibility and authorisation criteria can be found on our website.

4.4.2 Applying for authorisation to make payments without providing a guarantee

You must complete an application form Excise Payment Security System: application for authorisation to make payments of excise duties without a guarantee (EPSS(B)) which can be found on this website or if you contact the excise duties enquiries helpline.

You must send the completed application form to the:

EPSS Authorisation Team
Ruby House
8 Ruby Place
Aberdeen
AB10 1ZP

4.4.3 Arranging for a guarantee if you do not qualify for EPSS

Your guarantor must complete form C1201 TAPS Guarantee for payment of sums due to the Commissioners of HMRC which can be found on this website or phone our helpline on telephone: 0300 200 3700.

You must send the completed form to:

HMRC
Environmental Taxes Team
Room ELG-03
St Mungo’s Road
Cumbernauld
Strathclyde
G70 5TR

Telephone: 03000 592 688

Your guarantee amount should be set at a maximum amount that is sufficient to cover all the duty likely to be due, on cider removed from your registered premises to the UK home market, in any given accounting period.

If you’re not eligible to apply for EPSS and you wish to avoid having to provide a guarantee then, alternatively, you can pay your duty liability up front. The payment is an annual one and you must pay a year’s estimated duty in advance. You’ll need to contact the team to make the necessary arrangements.

Registered cider makers who have premises that are also approved as an excise warehouse, will be required to have a separate deferment guarantee to cover any duty due on removals from the excise warehouse unless they’re eligible to apply for authorisation to make payments without providing a guarantee.

You’ll not be authorised for duty deferment unless you have a guarantee or are authorised under EPSS.

4.4.4 If you do not provide a guarantee

If you fail to provide a guarantee, you’ll be required to pay the duty due when the duty point occurs, that is, as soon as you despatch cider to home use from your registered premises, rather than delaying payment of the duty until the 15th day of the following month.

4.5 Who can act as a guarantor

Only companies approved by us may act as guarantors. Most banks and insurance companies have this approval, but if you want to check a particular company, contact the EPT (read paragraph 4.3).

4.6 Cost of guarantee

The cost of the guarantee is a commercial arrangement between you and the guarantor.

5. Duty rates and when duty becomes due

5.1 Rates of duty for cider

The duty rates for cider are structured in bands according to the strength of the product and whether it is sparkling or not. They are shown as amounts in litres of pure alcohol.

Check the duty rates for cider.

The duty bands are set out in paragraph 5.2.

5.2 Rates of cider duty

There are a number of duty categories for cider:

  • still cider of alcoholic strength of at least 3.5% but less than 8.5%

  • sparkling cider of an alcoholic strength not exceeding 5.5%

  • sparkling cider of an alcoholic strength exceeding 5.5%

  • still cider of alcoholic strength of at least 3.5% for qualifying products under the draught relief scheme

  • sparkling cider of alcoholic strength of at least 3.5% but not exceeding 5.5% for qualifying products under the draught relief scheme

  • sparkling cider of an alcoholic strength exceeding 5.5% for qualifying products under the draught relief scheme

  • still cider of alcoholic strength of at least 3.5% for qualifying products under the small producer duty discount scheme

  • sparkling cider of alcoholic strength of at least 3.5% but not exceeding 5.5% for qualifying products under the small producer duty discount scheme

  • sparkling cider of an alcoholic strength exceeding 5.5% for qualifying products under the small producer duty discount scheme

5.3 When cider becomes liable to duty

Cider becomes liable to duty once it has been produced or when it is imported into the UK. For movements of cider from Great Britain to Northern Ireland refer to section 2.2) and 2.3 for information on the charge to Excise Duty and how to account for it.

5.4 Circumstances when ‘cider’ is deemed to be an other fermented product or spirit

Cider is considered to be an other fermented product (formerly made-wine) or spirit for duty and licensing purposes if:

  • it has an actual alcoholic strength by volume of 8.5% or more

  • the label of the container or the accompanying invoice or delivery note indicates that the alcoholic strength by volume is 8.5% or more

  • it contains any ingredient which imparts colour or flavour and is not listed in section 25

  • it contains an ingredient at a greater concentration than that set out in section 25

Further information can be found in Excise Notice 163: wine production and Excise Notice 39: spirits production in the UK.

If you want us to add an ingredient to the list at section 25, you may consult the National Association of Cider Makers (NACM) as to the suitability of the ingredient as an additive to cider or perry. If they’re content that your proposal may reasonably fall within the Finance Act (No. 2) 2023 definition of cider, submit your application along with the NACM’s written endorsement. You must contact the excise enquiries helpline in writing.

HMRC will not approve applications for the addition of herbs or spices, or fruit juices other than apple or pear, or for flavours of any type other than those specified in section 25.

5.5 When cider is made

Cider is considered to be made or produced at the point during fermentation when the strength of the product first exceeds 1.2% ABV.

5.6 Duty on low strength cider not exceeding 1.2% ABV

Duty is not charged on any cider if its alcoholic strength is 1.2% ABV or less when it is sent out from your registered premises.

If you intend to produce low strength cider by removal of alcohol from cider of a higher strength, you should contact the excise enquiries helpline who will advise you on any revenue requirements that may affect the process you intend to employ.

5.7 The duty point

Paragraph 5.3 explains when cider becomes liable to duty, but duty only becomes payable when the cider passes the duty point, that’s when it leaves duty suspension.

Duty ceases to be suspended when:

(a) the cider leaves registered premises unless it is delivered:

  • to other appropriately approved premises for further processing

  • to an excise warehouse

  • for exportation

  • for shipment as stores

  • to entitled diplomats

  • to entitled members of visiting forces

(b) the cider is constructively removed (read paragraph 5.12)

(c) the cider is lost

(d) the cider is irregularly diverted

(e) you’re no longer registered

(f) the premises on which you’re holding the cider cease to be registered premises

In addition, cider is considered to have left duty suspension when there is a failure to comply with any requirements relating to the duty suspension arrangements.

5.8 Who is liable for the duty

The person holding the cider at the duty point is liable for the duty.

5.9 When the duty must be paid

Normally, the duty should be paid by the 15th day following the end of your ‘accounting period’ in which the cider passed the duty point — read section 7 (but read also paragraphs 4.2 and 4.4.4).

5.10 How to calculate duty on cider removed from registered premises

The way you work out the duty you owe has changed.

You must now use the total litres of pure alcohol to work out what you owe.

Check the duty rates for cider.

Unless we’ve agreed you can use a different method, you must work out each part of the calculation to at least 4 decimal places.

To complete the EX606 Duty return declaration, you must round down the quantity of cider to the nearest whole litre.

Example

You have 155 cases of still cider, each containing 12 × 500ml at 7% ABV.

Multiply the number of bottles by the quantity in each bottle.

12 × 500ml = 6 litres per case

Multiply the number the litres in each case by the total number of cases.

6 × 155 = 930 litres in total

Multiply the total litres of cider by the ABV to work out the litres of pure alcohol

930 × 7% (the ABV) = 65.1 litres of pure alcohol

Multiply the litres of pure alcohol by the duty rate to work out the duty due.

65.1 × duty rate of £9.67 = £629.517, rounded down to the nearest penny = £629.51

5.11 What happens if the duty is not paid

If you fail to pay the duty by the due date, you’ll be liable to a civil penalty of 5% of the duty or £250 — whichever is greater. In addition, further penalties may be incurred for each day that you fail to pay the duty. Details of civil penalties are contained in Notice 209: civil penalties — fixed, geared and daily.

At any time after the due date for payment, our officer may take action to take possession of all cider, materials and equipment used in making cider or connected with your trade as a cider maker, which are either owned by you or are in your possession and auction them to recover duty due plus pay any Taking Control of Goods fees. Also read paragraph 2.6.

5.12 Paying duty in advance of cider leaving registered premises

If you consider that it would help your business to account for duty on any duty suspended cider in advance of delivery from registered premises, you may do so. This is known as constructive removal and allows the registered holder of the cider to change the status of the cider held on registered premises from duty suspended to duty paid, on payment of the proper duty, without the need to remove the cider from those premises. The duty should be paid in the normal manner (read section 7) by the 15th of the month following the calendar month in which the cider was constructively removed.

The following requirements have the force of law and are made under Regulation 12A (3) of the Cider and Perry Regulations 1989

You must record:

The date of any change of status of any cider from duty suspended to duty paid, and the product(s).

When cider has been constructively removed, it cannot be returned to duty suspension in registered premises.

5.13 Mixing of alcoholic products

What mixing means

It means mixing 2 or more alcoholic products together. This includes mixing 2 of the same type of alcoholic products, for example 2 different brews of beer.

Mixing restrictions

You can only mix 2 or more alcoholic products together if:

  • the mixing takes place before the Excise Duty point and the products are mixed either in an excise warehouse or under a relevant alcoholic products production approval granted by HMRC, for example a cider registration

  • the Alcohol Duty on each product being mixed has been paid, are all the same alcoholic strength and all products being mixed are the same type, like cider or beer

  • the Alcohol Duty on each product being mixed has been paid, and that amount is equal to or exceeds the amount of duty that would, if the mixing had taken place before the Excise Duty point, have been chargeable on the resulting mix

  • the Alcohol Duty on each product being mixed has been paid, the resulting mix is intended for consumption on the premises on which the mixing takes place

Post-duty point dilution of alcoholic products

You cannot mix water or any other substance with alcoholic products on which Alcohol Duty is chargeable if the:

  • mixing takes places after the Excise Duty point

  • resulting product is intended for sale

  • mixing had taken place immediately before the Excise Duty point, the amount of Alcohol Duty would have been greater than the amount actually payable

Mixing and diluting at the point of sale

The following requirements have force of law and are made under section 86(5)(c) of Finance (No.2) Act 2023

Mixing of duty paid products for consumption on the premises must be either:

  • undertaken by the customer from the separate drinks provided

  • provided by the server at the specific request of a customer from separate duty paid alcoholic products

This allows for the provision of drinks like lager and bitter mixes or cocktails on retail premises.

Record keeping

Your own commercial records will be acceptable if they include the date of mixing and the quantity, type and alcoholic strengths of products you mix.

5.14 Budget changes

You’re responsible for declaring the correct amount of duty from the effective date of change. When the duty rate changes, we’ll notify you of the new rates, the effective date and the time of the change. Following the budget, you can find details of the duty rate changes on this website or contact the excise enquiries helpline.

When the rate changes during an accounting period, you must complete 2 separate returns for the period: one at the old rates and one at the new rates. You should mark the returns pre- or post-budget as appropriate.

6. Records and accounts

6.1 General

As a revenue trader, you should observe the requirements of Excise Notice 206: revenue traders’ records. If your records do not satisfy our requirements we may direct you to make the necessary changes.

We require you to maintain and produce for examination your record of your business activities. We may examine:

  • profit and loss and trading statements

  • management accounts and reports

  • balance sheets and trading forecasts

  • internal and external auditors’ reports

  • any record maintained for a business purpose

6.2 Records to keep

The following requirements have the force of law and are made under Regulation 6 of the Revenue Traders (Accounts and Records) Regulations 1992

You must keep records which show:

  • materials used (including additives)

  • details of processes and operations including:

  • fermentations

  • additions

  • drawing off

  • bottling and packaging

  • quantities and strength of cider:

  • produced

  • received

  • sent out from registered premises

  • returned to registered premises

  • constructively removed

  • lost or destroyed on registered premises

  • rendered sparkling

  • samples

  • imports

  • exports

  • receipts

  • details of any stock-takes, including details of any surplus, deficiency or other discrepancy revealed by the stock-take

Generally your normal business records will contain or can be modified to contain the information we require.

6.3 Accounts to keep

You must keep a duty account. A duty account is a summary of the cider duty due in each accounting period.

The following requirements have the force of law and are made under Regulation 5(1) of the Revenue Traders (Accounts and Records) Regulations 1992

You must keep an account which contains the following information:

  • the amount of duty on all cider that leaves duty suspension

  • the amount of duty reclaimed on spoilt cider which has been destroyed or cider which has been reprocessed

  • the amount of any underdeclarations from previous periods

  • the amount of any overdeclarations from previous periods

  • the net amount of duty due for the period and the date, and method of payment

6.4 How long to keep records for

You must normally keep your business records for 6 years. If, however, this causes problems contact the excise enquiries helpline to ask if you can keep some of your records for a shorter period. You must get our agreement before destroying any of your business records that are less than 6 years old.

6.5 Keeping the original documents

You can keep your records on any form of storage technology, provided that copies can be easily produced and that there are adequate facilities for allowing our officer to view them when required.

You should contact the excise enquiries helpline to advise us before you transfer records. You may be required to operate the old and new systems side by side for a limited period of time. We may refuse or withdraw approval if any requirements are not met.

Make sure you keep your original registration certificate in a safe place.

6.6 Keeping your records on a computer

If you keep your records on a computer, we’ll require access to it so that we can check its operation and the information stored. We may ask for help from you or anyone else having charge of, or otherwise concerned with, the operation of the computer or its software.

If a computer bureau is employed, you’re responsible for arranging for the bureau to make your records available to us when we wish to see them. Normally this will be at your principal place of business.

7. Accounting for and paying duty

7.1 Accounting for duty

At the end of each ‘accounting period’, that is:

  • calendar month

  • 4 or 5 week period (provided this arrangement is agreed beforehand with HMRC)

you must total up all the cider sent out from your premises during that period, work out the duty due, complete a duty account and transfer the appropriate totals to a ‘monthly return’ — Wine, cider and other fermented products return (EX606).

7.2 Obtaining the return form

The EX606 is used to declare your liability for Cider Duty.

7.3 Filling in your return

You must fill in your monthly duty return, EX606, with:

  • the quantity of cider in each relative duty band you sent out for home use (or constructively removed) during the previous accounting period

  • any allowable deductions

  • the amount of duty you owe

Unless we have given you specific authority, you may only make deductions from your duty liability as outlined in this notice.

You’ll find that the EX606 has full instructions on the completion of the return.

Returns must be completed in ink and any changes must be initialled and dated by the person who signs the declaration.

7.4 What happens if a duty return is not submitted

If you fail to submit a return on time you’ll be liable to penalties — read paragraph 2.6. We have the authority to estimate the duty which would have been due and to pursue that debt through the civil courts — read paragraph 5.12. If you foresee any problems, you should immediately contact:

HMRC
Environmental Taxes Team
Room B1-25
St Mungo’s Road
Cumbernauld
Strathclyde
G70 5TR

Telephone: 03000 592 688

7.5 Who should sign the return

The proprietor, a partner, the company secretary or a director of the company should sign the declaration on the return. If this is not possible, you can, as one of the mentioned persons, authorise someone to sign the return on your behalf.

7.6 Can a single duty return be submitted for multi-site operations

Yes. If you have more than one registered premises owned by the same legal entity, you may, on request, combine the duty liability for each in the one duty return. However, an individual duty summary should be maintained for each site and consolidated in a duty account by the site submitting the return.

If you’re approved to produce both cider and wine and other fermented products, or if you produce either product on more than one set of premises, you may, combine the duty liability for both products and or premises in the one duty return.

7.7 Accuracy of returns

You can avoid a penalty by checking that you’ve given complete and accurate information in your duty return. You may be liable to a penalty if your return is inaccurate and, as a result, you do not pay enough duty or if you do not notify us that a duty assessment we have sent you is too low. If you’re aware you’ve made a mistake on your return, you must notify us as soon as possible. Depending on the circumstances, we may be able to reduce the penalty.

If you deliberately make a false duty return, you may face prosecution for the offence and incur a heavy penalty.

For further information on penalties, read link at paragraph 3.14.

You have the right to appeal if we impose a penalty. For further information on appeals, read section 27and link at paragraph 3.14.

7.8 Discovering errors relating to earlier accounting periods

If you discover underdeclarations relating to previous accounting periods which total less than £1,000 duty, you must enter the amounts against lines 21 to 24 on the reverse of the EX606 as appropriate, and carry the total forward to lines 37 and 18 for the current accounting period.

Similarly, if you discover overdeclarations totalling less than £1,000 duty, you must enter the amounts against lines 21 to 24 on the reverse of the EX606 as appropriate and carry the total to lines 38 and 19 for the current accounting period. You do not have to send a written advice, but details of the errors must be retained for inspection.

If, however, the total underdeclaration and or total overdeclaration is £1,000 duty or more, you must, in addition to making the adjustments outlined, send full details in writing to the Environmental Taxes team (read paragraph 7.4 for address) along with the return.

7.9 When to send in your return and pay the duty

You must submit your return and payment so that they arrive not later than the 15th day of the month following the ‘accounting period’. When the 15th day falls at a weekend or on a public holiday the return and payment must be received by the previous working day.

7.10 How to pay

HMRC accepts payment by various methods but recommends you pay electronically using one of the following options:

  • approve a payment through your online bank account

  • Bacs Direct Credit

  • CHAPS

  • internet or phone banking

You can find further information and help at Pay Wine or Cider Duty.

If you have a payment to make by Bacs Direct Credit which exceeds £20 million, you need to make arrangements with your own bank to make sure payment reaches HMRC on the due date, by an alternative payment method such as CHAPS.

7.11 Where to send the completed return

All registered cider makers must send their returns to:

HMRC
TAPS and CCL
Cumbernauld Accounting Team
Accounts Office
St Mungo's Road
Cumbernauld
Glasgow
G67 1YZ

7.12 Sending a nil return

Even if you make no deliveries of cider to home use during an accounting period, you must still send us an EX606 return form. Insert ‘nil’ in the quantities box, sign the return and send it to us in the normal way.

8. Measurement of quantity

8.1 General

We can require duty to be accounted for on the actual quantity of cider in each container as it passes the duty point. However, most packagers do not measure the quantity in each container as they use the ‘average system’ of quantity control.

Under this arrangement, which is used widely throughout the UK and EU, the average contents of packages must not be less than the declared contents (that is, that marked on the can or bottle or label or, in the case of kegs and casks, on the invoice or delivery note). Within specified limits the actual contents of any particular container may be more or less than the declared contents.

Packagers using the average system conform to a Weights and Measures Code of Practice which has been agreed with Trading Standards. The Code is available from the National Association of Cider Makers. Packagers are obliged to monitor and record the actual quantity of cider by sampling a proportion of packages to make sure they fulfil the Code’s requirement.

8.1.1 Quantity of cider to use for duty purposes

When sending out cider for UK consumption from your registered premises, you should normally charge duty as follows:

  • for cider delivered in small pack, that’s in containers not exceeding 10 litres, on the quantity declared on the label of the can or bottle (including polyethylene terephthalate (PETs) or other container (for example, cider in ‘bag in box’)

  • for cider delivered in large pack, that’s in containers with a capacity of more than 10 litres but less than 400 litres, on the quantity declared on the invoice or delivery note

If you do not use the average system for large pack, you should charge duty on the actual quantity of cider in each container unless you can demonstrate that you’ve not exceeded the overfill tolerances set out in paragraph 8.3.8.

Similarly, where cider is sent out in tankers or tanks with a capacity of more than 400 litres, duty should be charged on the actual quantity sent out.

8.1.2 Recording the quantity of cider delivered

Your normal commercial records should be acceptable provided that they contain sufficient information for calculating duty. You’ll also need to enter the total volume of cider delivered during the accounting period on the EX606 duty return — read section 7.

8.1.3 Reasons to record the quantity of cider delivered

Apart from normal commercial considerations, you must record the quantity of cider delivered because:

  • the quantity will affect the calculation of the duty

  • if the delivery is under duty suspension and subject to pilferage, an accurate assessment of the loss will be needed

  • it may affect the adequacy of any financial guarantees

8.2 Small pack

8.2.1 Method used for ascertaining quantity in small pack

Small pack refers to containers of 10 litres capacity and less. Packagers are required to fill these containers in accordance with ‘average contents’ rules (the system referred to in paragraph 8.1).

8.2.2 Sampling rate to use

You’re required to take samples as follows:

  • a minimum of 2 samples must be taken per shift

  • each sample must be a minimum of 5 packages

  • at least one sample should be taken for each production run

Subject to compliance with these requirements, the average of the samples taken for the purpose of complying with average contents rules will be treated as the quantity of cider in a container.

8.2.3 Quantity to use for duty purposes

Evidence of compliance with Weights and Measures legislation will be sufficient to accept the labelled contents as the duty base, unless there are grounds for believing that deliberate duty avoidance is involved.

8.2.4 Meaning of ‘due diligence’

‘Due diligence’ is the term used for the measures you have in place to monitor the filling process and the actions you take to prevent and or rectify any instances of excessive over or under filling found.

8.2.5 Demonstrating that ‘due diligence’ has been observed

You should monitor the filling process to make sure that the quantity put into the package does not regularly excessively exceed the amount declared on the label. You should record these checks and provide an adequate audit trail to satisfy our officer that ‘due diligence’ is being exercised.

Where there’s evidence of consistent excessive overfilling, additional duty will be due.

8.2.6 Circumstances when additional duty would be paid

Duty becomes payable at the end of the accounting period in which a container of cider is delivered to home use. That is, when it passes the duty point.

Where you’ve incurred an additional duty liability as a result of overfilling, the additional duty should be paid in the relevant accounting period when cider is supplied to home use from your registered premises or from registered premises or excise warehouses owned or operated by your company.

If you fail to properly record and or pay the additional duty due on excess volume that you’ve delivered to home use, we’ll assess you for the additional duty due. If you cannot produce accurate records from which the additional amount of duty can be readily established, including quantities delivered to home use, we’ll use ‘best judgement’.

In the case of overfilled containers of cider supplied in duty suspension to third parties, you should record details of these deliveries separately in your records. The law requires that the person holding the goods at the time of their delivery to home use, is liable for the duty, including that on the volume in excess of the declared quantity. However, if we’re satisfied that the third party was unaware that the container had been overfilled and that the third party is entirely independent of you, we’ll not normally recover the additional duty due. In deciding whether or not to pursue the additional duty we’ll take into account the following factors:

  • the relationship between you and the third party

  • contracts of supply, if appropriate

  • the price paid for the goods

  • any other information considered relevant

This system has been devised taking into account, as far as possible, existing trade practices so minimising your compliance costs. Any attempt to evade duty by underdeclaring the quantity on which duty is charged or by manipulating deliveries to evade duty, may lead to prosecution.

8.2.7 Combining the results of monitoring the volume for 2 or more products

For small pack, we’ll normally require you to assess the monitoring results separately for each product. However, if in exceptional circumstances, for example, where a small amount of a seasonal product is packaged and separate monitoring would produce an inequitable outcome, we’ll consider requests for combining the monitoring results for a number of products.

8.2.8 Arrangements in place for cans with widgets

If the widget you use retains cider, then that retained quantity need not be declared for duty purposes. You must carry out tests to confirm the average retention volume. This average retention must be agreed with HMRC. Once agreed, the ‘due diligence’ concept may be applied to the labelled quantity plus the retained amount.

8.3 Large pack

8.3.1 Method used to ascertain the quantity in large pack

Large pack refers to containers in excess of 10 litres capacity up to a maximum of 400 litres such as kegs and casks. Containers of over 400 litres are generally referred to as ‘bulk’, and should be treated individually, with the actual measured quantity being used.

Packagers of large pack containers customarily fill casks and kegs in accordance with the average contents rules (the system referred to in paragraph 8.1). Provided that the average quantity of the samples taken for the purpose of complying with the average contents rules complies with those rules, then the nominal contents, or whatever other quantity that may be declared on a label or sales invoice and so on, will be treated as the quantity of cider in a container.

8.3.2 Sampling rate used

Under the average contents rules, packagers are permitted some latitude in the sampling regime that they adopt.

In determining volume for duty purposes, packagers will be expected to maintain a minimum sampling rate of either:

  • one container per filling head per operating day

  • 0.1% of a production run in excess of 4,000 containers, the samples to be representative of the mix of containers filled

A copy of the sampling protocol you intend to use for the purpose of assuring compliance with ‘average contents’ rules and for duty purposes should be sent in to the address as detailed in paragraph 5.5.

8.3.3 Smaller packagers

Some smaller packagers do not take samples but use their containers as capacity measures. In order to meet the tolerance requirements in paragraph 8.3.8, these packagers should take steps to make sure the average capacity of their containers are operating within the set limits.

8.3.4 Quantity used for duty purposes when cider is produced in large pack

The quantity of cider in any container will be treated as the amount shown on the label of the container or on any invoice, delivery note or similar document issued in relation to the cider, subject to the following conditions:

(a) that you maintain records of the quantity of cider found in samples you take for the purpose of compliance with ‘average contents’ rules

(b) that a proper record is kept of the monitoring and control procedures, including a statement of the sampling protocol, used for the purpose of assuring compliance with these rules

(c) that the tolerances referred to paragraph 8.3.8 are adhered to

For containers with a capacity in excess of 400 litres, the quantity for duty purposes is the greater of the actual quantity despatched or that stated on the delivery note or invoice.

At the end of each accounting period, for each target population of containers, you should calculate the average volume from the measured volumes of the samples you’ve taken. These sample volumes are to be expressed to 2 decimal places and truncated if necessary. The accounting period average is to be truncated to one decimal place. This calculation should be performed for each racking line for each container size. Individual types of cider may also be treated separately if that is the rule established in your sampling protocol as part of your monitoring and control procedures.

8.3.5 Cask-conditioned cider

This section has force of law under Regulation 5(3) of The Alcoholic Products (Excise Duty) Regulations 2023

Cask-conditioned cider continues to ferment in the cask for some time, producing a residue which often cannot be consumed. This is known as undrinkable sediment.

Duty need not be charged on any undrinkable sediment in your cask-conditioned cider, provided:

  • your customer (for example, the publican) is made fully aware in writing, at or before the time of receipt, of the quantity of cider on which duty has been charged — if, for example, a barrel of 36 gallons (163.7 litres) contains half a gallon (2.3 litres) of undrinkable sediment, the customer must be made aware, by a statement on the label, delivery note or price list for example, that duty has been charged on 161.4 litres (a copy of the notification to customers must be retained)

  • you can, if required to do so, satisfy our officer that only undrinkable sediment has been excluded from the duty charge

Any sediment on which duty has not been charged cannot be included in any subsequent claims for relief on spoilt cider.

8.3.6 Calculating the amount of undrinkable sediment

There is no prescribed method. You must, however, be able to satisfy us that the method you use gives equitable results.

The measurement of undrinkable sediment in any container returned to you is not an acceptable method as the cider has been outside your control and may have been tampered with.

Sediment levels for each quality of cider and container size must be regularly monitored by producers and reviewed or amended (as necessary) at least annually and notified to us. Any changes to recipes or ingredients, and so on during the year, which would significantly affect sediment levels, must be notified to us and the allowance adjusted accordingly.

You must contact the excise enquiries helpline in writing.

8.3.7 Is there an undrinkable sediment allowance for polypins, mini-pins and bottle-conditioned cider

There’s no undrinkable sediment allowance for polypins and mini-pins sold by cider makers to the public or on bottle-conditioned cider.

8.3.8 Filling tolerances

The filling tolerances are set out in the Schedule to the Cider and Perry Regulations 1989 and are:

(a) in the case of filling controlled by meter or weighing

in the accounting period, the average volume of the samples for each container size from each racking line must not exceed the following tolerances:

  • the declared quantity plus 0.5 litres for containers intended to contain a volume not exceeding 100 litres

  • the declared quantity plus 0.5% for containers intended to contain a volume above 100 litres but not more than 400 litres

(b) in the case of containers filled using other systems of control or filling to capacity

in the accounting period, the average volume of the samples for each container size from each racking line must not exceed the following tolerances:

  • the declared quantity plus 1 litre for containers intended to contain a volume of 100 litres and less

  • the declared quantity plus 2 litres for containers intended to contain a volume exceeding 100 litres but not exceeding 200 litres

  • the declared quantity plus 3 litres for containers intended to contain a volume exceeding 200 litres but not more than 400 litres

8.3.9 If the overfill tolerance is exceeded

If the average volume of the samples in a target population of containers for a racking line exceeds the specified tolerance in any accounting period, there will be an additional duty liability when that cider is sent to home-use.

8.3.10 How to calculate any additional duty liability

The volume on which additional duty is due is not just the amount in excess of the tolerance, but is the whole quantity of cider in excess of the nominal contents for that target population of containers.

The following 2 examples should help you to work this out.

Example 1

You pack by meter or weight control and your target population of containers intended to hold 50 litres are:

  • 1,000 containers of cider not exceeding 7.5% ABV

  • 500 containers of ciders exceeding 7.5% but less than 8.5% ABV

The filing tolerance (from paragraph 8.3.8a) would be 0.5 litres per container.

If, at the end of the accounting period, your monitoring record showed that the average contents of each container was 50.7 litres, additional duty will be due on the whole quantity in excess of the nominal quantity, that is, 0.7 litres, multiplied by the number of containers delivered to home use from the target population during the accounting period at the appropriate duty rate.

Example 2

If you packed by filling to capacity or another method other than metering or weighing, and your target population of containers intended to hold 50 litres was:

You pack by filling to capacity or another method other than metering or weighing, and your target population of containers intended to hold 50 litres are:

  • 1,000 containers of cider not exceeding 7.5% ABV
  • 500 containers of cider exceeding 7.5% but less than 8.5% ABV

The filling tolerance (from paragraph 8.3.8b) would be 1 litre per container.

If, at the end of the accounting period, your monitoring record showed that the average contents of each container was 51.1 litres, additional duty will be due on the whole quantity in excess of the declared quantity, that is, 1.1 litres, multiplied by the number of containers delivered to home use from the target population during the accounting period at the appropriate duty rate.

For further details on when additional duty should be paid, read paragraph 8.2.6.

9. Alcoholic strength

This section applies to all alcoholic products:

  • entirely manufactured in the UK (sometimes referred to as domestically produced)

  • imported into the UK as finished products

  • imported into the UK as bulk products and bottled here

  • imported into the UK as bulk products and used as ingredients in a final product made in the UK (for example, bulk wine imported and used to make a domestically produced ‘other fermented product’)

9.1 What alcoholic strength means for duty purposes

Alcoholic strength is the percentage of alcohol by volume (ABV) in the product measured at 20°C. For duty purposes, you should round this down to one decimal place. For example, 7.59% ABV becomes 7.5% ABV.

9.2 Alcoholic strength for duty purposes

It’s mandatory for prepacked products to include the strength of an alcoholic product either:

  • directly on the container

  • on a label attached to the container

For duty purposes the labelled strength is the strength of the alcoholic products in most cases.

If there’s no label strength (for example, on a very old bottle), you must use the strength on any document relating to the container. If there is no other documentation, you should use the actual strength method (read section 9.5).

9.3 Cask conditioned products

Cask conditioned products, including bottle-conditioned products and any other unfinished products, will continue fermenting after removal from production premises. This will result in an increase in strength. You must account for duty on the strength at which you expect the product to be when it is consumed. This is also the strength which would be shown on the label or invoice or delivery note.

For duty purposes, the strength of the cask conditioned product is the greater of one of the following:

  • the final strength the product is expected to have when sold

  • the strength shown on the label of the product

  • the strength shown on any invoice related to the product

  • the strength shown on any delivery note relating to the product

  • the strength shown on any other document issued in relation to the product

9.4 Measuring strength

You can use any method to measure the strength of a product, if your chosen method produces a result equal to, or greater than that described in Schedule 2 of the Alcoholic Products (Excise Duty) Regulations 2023.

9.5 The actual strength method

This is a scientific measurement taken using the process described in Schedule 2 of the Alcoholic Products (Excise Duty) Regulations 2023. HMRC will accept any method that measures strength as long as it’s equal to, or greater than that described in Schedule 2.

9.6 Due care

This section has force of law under regulation 3(7) of the Alcoholic Products (Excise Duty) Regulations 2023

You must take due care to make sure the strength used to calculate the duty accurately reflects the actual strength of the product. If you have not done this, the strength will be worked out using the actual strength method.

If you’re a UK producer, you must continuously monitor and record ABV results. These will normally fall randomly on either side of the target strength which will be the declared strength. The average of your results should be close to the target strength.

Occasionally the ABV can vary, but as long as you take appropriate action to return the strength of the product to within its normal specification, due care will have been demonstrated. You must keep records of action taken to maintain product strength within control limits.

For imported products, you must make sure that the ABV of your products is labelled according to any relevant labelling legislation. For example, the provisions in Annex XII of the Food Information to Consumers Regulation or (for wine of fresh grape) Article 44 of EU Regulation 2019/33 (as far as these apply as retained EU law).

Your commercial due diligence should make sure that the:

  • products you import conform to legal specifications

  • ABV on the label conforms to the tolerances specified in the relevant labelling rules for each product category

For cask conditioned products, in addition to these actions, you must regularly monitor and record the actual strength of a quality control sample of cask and bottled conditioned products at the expected time of consumption. This is to establish its alcoholic strength. The method and frequency of checking is up to you, but you must be able to satisfy HMRC of the accuracy of your results.

9.7 How we will check accuracy

For UK-produced products, HMRC officers will examine your testing results and records of actions taken to keep declared strength in line with actual strength. If the results have consistently fallen above your target, we’ll want to confirm that action was taken as soon as the problem was identified to bring the process back into control or to change the declared ABV.

For imported products, HMRC officers will look at your commercial due diligence. If the ABV is consistently above the declared ABV by an amount greater than the permitted tolerances, we’ll want to see an action plan to bring the production or labelling processes into alignment.

For either imported or UK produced products, if you’ve failed to take appropriate action, an assessment may be raised for the additional duty due.

9.8 Dispute over the strength

HMRC officers can take samples of product which will be analysed using the method described. The analysis result will establish the actual dutiable strength of the product.

The following is taken from Schedule 2 of the Alcoholic Products (Excise Duty) Regulations 2023:

  • take a representative sample and, after clearing it of sediment and gas in an approved manner, a definite quantity by measure at the temperature of 20°C is made alkaline by the addition of calcium hydroxide, and then distilled.

  • make up the distillate at the temperature of 20°C with distilled water to the original measure of the quantity before distillation.

  • ascertain the strength of the distillate by determining its density in air at the temperature of 20°C by means of a pycnometer.

  • the strength of product is the percentage of alcohol by volume in the ‘Laboratory Alcohol Table’ which corresponds to the density determined by this method — where the density falls between 2 consecutive numbers in the table the strength will be determined by linear interpolation

Where a result achieved by this method is rendered inaccurate by the presence of substances other than alcohol, that method will be adjusted for the purpose of producing an accurate result.

10. Duty reliefs — general information

10.1 Small Producer alcoholic products

You should read this information alongside the other guidance on Alcohol Duty to check:

  • if you’re eligible for Small Producer Relief

  • how to work out your reduced rate

10.2 Alcohol Production Account

This section has the force of law under regulation 6 of the Revenue Trader (Accounts and records) Regulations 1992.

You need to keep a Production Account showing the following information:

  • estimate of current year’s production
  • a record of your estimate of the current year’s production together with details of how you arrived at the estimate
  • previous production year’s actual production (to be recorded each month)
  • the calendar month and year in question
  • the total quantity (in hectolitres of pure alcohol to 2 decimal places) of alcohol that you’ve produced in that calendar month split if appropriate between your own cider and cider you’ve produced under licence
  • the quantity should be reduced to take account of any cider you subsequently determine to be spoilt or destroyed before the duty point

At the end of each calendar year, your annual production totals shown in the Production Account will determine your continued eligibility for the scheme and the reduced rate for the following year. Production must be under 4,500 hectolitres of pure alcohol to continue to qualify for the scheme.

In addition to the Production Account, all cider-makers are required to keep an Alcohol Duty account.

10.3 Connected premises

Any question as to whether a person is connected with another is determined in accordance with section 1122 of the Corporation Tax Act 2010. The definition of ‘connection’ is very wide but some examples of the circumstances in which people are ‘connected’ are set out in the following guidance.

10.3.1 Examples

Individuals are connected by marriage, family relationships and the like.

A partner is connected with their business partners and their spouses.

Companies under the same control are connected with each other, and the persons controlling them. A person has control has control of a company if that person exercises, or is able to exercise or is entitled to acquire direct or indirect control over the companies’ affairs.

A company is connected with any shareholder (whether an individual or a company) which has control of the company, whether on its own or together with persons who are connected with the shareholder.

Companies are connected as a result of their being controlled by connected persons, for example, husband controlling company A and wife controlling company B.

10.3.2 Commissioners discretion

In exceptional circumstances, HMRC may treat 2 connected persons as if they are not connected for the purposes of small producer relief. For instance 2 family members are estranged and have no relationship with each other.

10.4 How to make a reasonable estimate of the current Small Producer year’s production

You must take all of the relevant factors into account including any contracts you already have to supply small producer alcoholic products and any expansion plans.

Be as accurate as possible. If you make an untrue estimate by stating the production premises will produce 4,000 Hectolitres of pure alcohol in the current small producer year when you know that a reasonable estimate would be 5,000 Hectolitres of pure alcohol, we can recover all of the duty underpaid.

10.5 When to notify HMRC of your estimate

You only have to tell us how much alcohol you reasonably estimate that you’ll produce when you apply for registration with us in respect of that production premises. You do not need to notify us of subsequent estimates but you must record in your business records of each small producer year’s estimate at the time you make it, together with details of how you arrived at the estimate. This information must be kept in the form of an Alcohol Production Account.

10.6 What’s included in the previous small producer year’s production figure

This is the total quantity of product produced by a production premises or group of connected production premises in the previous small producer year and includes all alcoholic products you’ve produced, whether for yourself or for another producer or third party. It is not the quantity of product removed from the production premises. It is the quantity of product produced and put into tanks, casks, kegs, bottles, or any other receptacles of a kind in which product is distributed or sent in bulk to be packaged elsewhere.

It includes any product:

  • in stock at the end of the year
  • consumed on the premises
  • used for sampling or research

It does not include unfinished products produced in the process of making a different alcoholic product (for example, wort).

Details of your production must be kept in the form of an Alcohol Production Account.

10.7 If more than one person produced alcoholic product in the same premises during a calendar year

(a) Where more than one person produced small producer alcoholic products in the premises in that small producer year and there was no break in production (because the cancellation and new registration dates are together), the production figure for the purposes of small producer relief will be the combined total of each person’s production in that small producer year.

For example, company A produced 2,500 Hectolitres of pure alcohol in the premises from 1 February to 30 September and then sold the premises to company B which produced 1,000 Hectolitres of pure alcohol in the premises from 1 October to 31 January, the total production on the premises (the figure for the purposes of the small producer relief) is 3,500 Hectolitres of pure alcohol — the sum of company A and company B’s production figures.

(b) If there was any time during that year when the premises was not used to produce alcoholic products, for example, company A ceased production in July but only sold the business to company B in September, the 2 companies’ production figures must be grossed-up - using the formula:

A ÷ D × 365

Where A is the amount of alcohol produced in the previous year and D is the number of days in that part of the previous year.

For example, company A produced 2,750 Hectolitres of pure alcohol during the period 1 February to 30 July and company B produced 1,175 Hectolitres of pure alcohol between 1 September and 31 January. The grossed-up small producer year production figure for the premises will be 4,289 Hectolitres of pure alcohol, being 3,925 (2,750 + 1,175) divided by 334 (the number of days on which the premises was used to produce alcohol) multiplied by 365.

In either case, company B will need to know details of company A’s previous production. In the case of a transfer of a going concern, the business records, including the Alcohol Production Account should be transferred to the new owner.

10.8 If you share production premises

Where persons share the use of the production premises to produce alcohol in a small producer year, the production figure for the purposes of the small producer relief will be the total production within the premises in that year.

For example, company A produced 3,350 Hectolitres of pure alcohol in the premises from 1 February to 31 January and company B produced 675 Hectolitres of pure alcohol in the same premises from 1 February to 31 January, the production figure for the purposes of small producer relief is 4,025 Hectolitres of pure alcohol — the sum of company A and company B’s production figures. Therefore, each person will be applying the same rate to any small producer alcoholic product that they produce.

On application for registration, each producer must notify us if there is another production premises already registered at the premises. The plan, which accompanies the application, must show the position of the vessels, plant and any separate area held for each producers product.

Each producers alcoholic products must be clearly identifiable in the registered premises and in any records, including the duty status of all the alcoholic products at any time.

10.9 How production rules apply to premises that are part of a group of connected premises

If the group comprises, for example, 6 premises, 4 of which have been in production for the whole of the previous small producer year, one of which began to produce alcoholic products part-way through that small producer year and one is to start producing alcohol during the current small producer year, you simply determine each premises actual or deemed production figure (as explained in the previous paragraphs). You’ll need to add all of those figures together to arrive at the group’s production figure for the purpose of making sure you are eligible for small producer relief.

10.10 If you export duty suspended small producer products

You’ll need to establish in advance of delivery or exportation that the consignee is authorised to receive the small producer product.

If the country you are exporting to operates a small producer scheme, the consignee may ask you to provide a certificate, endorsed by HMRC, that the product you’re exporting is small producer alcoholic product produced in the UK. This is so they can establish in advance of the importation to their country that the premises in the UK and the product is eligible under their rules. It is your responsibility to be aware of the rules and production volume limits of the small producer scheme in the country you are exporting to, so that their requirements are met.

You also need to be aware that different production limits apply to Northern Ireland. Check if you’re eligible for Small Producer Relief on Alcohol Duty for the production thresholds by product type for Northern Ireland.

If a certificate is required, you’ll need to make a self-declaration of your production volumes which HMRC will certify.

  1. Copy the certificate template shown in section 18.6 and paste or save as a word document.

  2. Complete the first part of the document, then print and sign it.

  3. Scan the document and attach to an email.

  4. Send the email to nru.alcohol@hmrc.gov.uk.

  5. The Excise Processing Teams will validate by completing the ‘Certification — For Official Use’ part of the document and return it to you.

The process is temporary until a new print and post it form is available on GOV.UK.

You’ll need to use EMCS when moving alcohol in duty-suspension to the place of export and in Northern Ireland when moving alcohol in duty-suspension to EU member states. The following statement that alcohol is ‘small producer alcoholic product’ will be required on the eAD:

‘It is hereby certified that the product described has been produced by an independent small undertaking with a production in the previous year of [insert] hectolitres of pure alcohol’.

This statement will let the person who removes the alcoholic product from duty-suspension to establish that the alcoholic is small producer alcoholic product and calculate the reduced duty rate payable.

A movement guarantee is required for exports.

For more information on deliveries and exports through EMCS, read receive goods into and remove goods from an excise warehouse (Excise Notice 197).

10.11 If you export small producer cider or perry to Ireland, who will validate your APT5 form

Relief for small producer cider and perry is granted in Ireland through a repayment system. In order to qualify for repayment, the importer will need a declaration of your production on a form APT5. This form will need to be validated by HMRC for UK producers. Details of the scheme and the form are available in ‘Microbreweries — establishment and relief’ on the Irish Revenue website. The completed form for validation should be sent to the Excise Processing Team (EPT) who will arrange for its validation and return to you.

10.12 Principles and examples — working out your alcohol production figure for Small Producer Relief

Your alcohol production figure must include the total alcohol in products made on your premises in a year (1 February to 31 January). You’ll use this figure to:

  • work out if you’re eligible for Small Producer Relief (SPR)
  • calculate your reduced rate

This section includes examples of when:

  • packagers add ingredients, as the product would become unstable if added before transportation
  • alcohol moves between different producers
  • alcohol changes classification
  • production takes place across different production years

You can use the examples and the following general principles to work out what to include in your alcohol production figure for SPR. These are not exhaustive.

10.12.1 General principles

Here are some principles to consider when working out your alcohol production figure:

  • you can measure the alcohol at various points in the production process, as long as you take a consistent approach
  • you must count alcohol when there are no more processes that alter the pure alcohol of the product — packaging is not counted as a process
  • for the first production year (ending 31 January 2024), HMRC accepts that producers may not have enough records to calculate alcohol production accurately
  • you should include alcohol produced that year in your alcohol production figure, even if products increase in strength slightly after production
  • the premises where the product is made determines the rate of SPR — it does not matter whose premises the product is in when it passes the duty point

10.12.2 Example one — sending cider for packaging

A producer must include the alcohol in product they send to a packager in their alcohol production figure. The packager does not need to include this alcohol in their own alcohol production figure. This applies even if the packager pays duty on the product.

If the packager is also a producer, the SPR rate for the products is the original producer’s rate. This applies as long as the packager has not significantly changed the:

  • alcoholic strength of the product
  • type of alcoholic product

(a) Company A makes cider and includes the alcohol in their alcohol production figure. They do not have bottling facilities, so company A sends the cider to company B who bottle it. The SPR rate for the cider is company A’s rate.

(b) Company A makes cider. They blend the cider with fruit or flavours to produce a fruit cider (other fermented product). Company A sends the blended product to company B who package it. The SPR rate for the fruit cider (other fermented product) is company A’s rate.

(c) Company A makes cider on their premises and sends a base cider to company B, a large cider maker, for packaging. Company A is not able to blend the sugar and other items at their site as this would result in an unstable product. At company B’s site, they blend the base cider with the other items, as allowed by paragraph 25.3, and package it. The amount of pure alcohol provided by company A does not change at company B’s site. Neither does the duty category. Company A includes the alcohol in their alcohol production figure. They also pay any SPR rate they’re eligible for.

(d) Company A makes cider and and sends it to company B for packaging. Company A includes the alcohol in the cider in their alcohol production figure. Company B uses their own ingredients to blend with the base to produce a fruit cider (other fermented product). The SPR rate for the fruit cider is now company B’s rate. Company B includes the alcohol in the fruit cider (other fermented product) in their alcohol production figure. They must do this even if they return the cider to company A, who market and sell it.

10.12.3 Example 2 — cider to sparkling cider

(a) Company A makes still cider, some of which is subject to secondary fermentation. They include the total alcohol after secondary fermentation in their alcohol production figure. If company A produces the cider in one SPR year and secondary fermentation takes place in the next SPR year, they must include it in their alcohol production figure for the second SPR year.

(b) If company A sells the still cider to company B who then renders it sparkling:

  • company A includes the alcohol in the still cider in their alcohol production figure
  • company B includes the total alcohol in the sparkling cider after secondary fermentation in their alcohol production figure

Company B also pays the SPR rate they have on the sparkling cider.

10.12.4 Example 3 — separate producers, one product category to another

Both companies must include alcohol in their alcohol production figure if:

  • company A sells a product to company B
  • company B uses the product to produce a different alcohol product

For example, company A makes cider. They include the alcohol in the cider they make in their alcohol production figure that year. They sell some of the cider to company B who uses it to make cider brandy. Company B includes the total alcohol in the cider brandy in their alcohol production figure that year.

10.12.5 Example 4 — cask conditioned products

Cask conditioned products increase in strength after leaving production premises. This is because they continue fermenting. You must include the alcohol in the product when it leaves the premises in your alcohol production figure.

For example, company A makes 1,000 litres of 4.5% cask product. This means the product contains 45 litres of pure alcohol. Company A expects the alcoholic strength of the product will be 5% when sold for retail. This is because the product continues fermenting. As a result, the final product will contain 50 litres of pure alcohol. Company A only includes 45 litres of pure alcohol in their alcohol production figure for SPR. But they must still declare 50 litres of pure alcohol for duty purposes.

10.12.6 Example 5 — third party produced alcohol held in duty suspension

Company A will not include alcohol in their alcohol production figure if the product is:

  • produced by a third party
  • held in duty suspension on company A’s site

For example, company A makes cider. They also receive cider from company B that they bottle and hold in duty suspension. Company A only includes the alcohol in the cider they produce in their alcohol production figure. Company B includes the alcohol in the cider they produce in their own alcohol production figure.

10.12.7 Example 6 — mixed bases

Company A makes cider from a mix of:

  • their own cider base
  • cider base purchased under duty suspense from company B (another small producer) and company C (a large producer not eligible for SPR)

Company A includes the total alcohol of the product in their alcohol production figure. The final packaged cider, when passing the duty point, is eligible for any SPR rate of company A.

10.13 Duty relief entitlement

Natural losses and wastage and other legitimate causes for lost product are not liable to duty provided we’re satisfied that they are genuine losses that are down to the production process.

There’s also provision for duty relief on:

  • accidental losses on registered premises — read paragraph 11.2
  • spoilt cider or cider otherwise unfit for use — read paragraphs 11.7and section 13
  • cider not exceeding 1.2% ABV — read paragraph 5.7
  • trade samples — read section 14
  • cider for your own domestic consumption — read section 15
  • cider with less than 8.5% ABV that’s intended to be sold on draught — check if you’re eligible to pay less on draught products
  • alcoholic products if you produce 4500 hectolitres or less of pure alcohol per year — check if you’re eligible for Small Producers relief

11. Irregularities, losses and deficiencies in registered premises

11.1 Responsibilities as a registered cider maker

As a registered cider maker, you’re responsible for the control of cider in your registered premises. You must have the necessary systems in place to control and safeguard your stocks. You must critically examine all losses and deficiencies.

11.2 If I accidentally lose duty suspended cider, do I have to pay the duty

No, providing we’re satisfied that the cider has been lost in registered premises and has not been consumed.

11.3 Keeping records of losses

You need to keep records of production and processing and these should indicate how much cider you lose during routine operations, for example, the losses you normally incur during packaging operations.

The following requirements have the force of law and are made under Regulation 6 of the Revenue Traders (Accounts and Records) Regulations 1992

For accidental losses you must record:

  • the date and time the loss occurred

  • the description (product name) and the volume of cider lost, and the alcoholic strength if the loss occurred after production had been completed

  • the vessels in which it was contained, and the reason why the accidental loss occurred

11.4 Unexplained losses

If cider cannot be accounted for after the start of production, and there’s no acceptable explanation, you’re liable for duty on the missing cider. It’s therefore in your own interest to keep proper records of all losses.

11.5 Can I offset stock losses against surpluses

Yes, if you hold documentary evidence demonstrating that stock losses and surpluses are related. Your records must contain a clear audit trail to justify any adjustments of stock records following the discovery of errors. You must justify each offset. We do not allow you to accumulate losses and surpluses from various sources and then offset gross totals.

11.6 Losses of duty paid cider

Normally there’s no duty relief in respect of cider which is lost after it has passed the duty point.

11.7 If duty suspended cider is spoilt, do I have to pay the duty

No, providing we’re satisfied that the cider has been unintentionally spoilt, contaminated or otherwise rendered unfit for consumption in the registered premises and has not been consumed. You may ‘write off’ the quantities concerned after you’ve recorded the information in your records and destroyed any spoilt product.

We may examine your records as part of our audit process. If we’re not satisfied with your explanation and supporting evidence, we’ll require you to pay the duty on the quantity previously ‘written off’.

Remember that other legislation may apply when you destroy spoilt cider — for example, legislation on pollution.

11.8 Keeping records of spoilings

The following requirements have the force of law and are made under Regulation 6 of the Revenue Traders (Accounts and Records) Regulations 1992

You must record:

  • the date and time of spoiling

  • the method of destruction employed

  • the vessels in which it is or was contained

  • the description (product name) and the volume of cider spoilt, and the alcoholic strength if the cider was spoilt after production has been completed, and the reason why the cider was spoilt

11.9 May I destroy duty suspended cider without having to pay the duty if the cider is damaged or in a non-marketable condition

Yes, as long as you follow the procedures in paragraphs 11.10 to 11.12.

11.10 Giving notice of destruction

You must give us at least 5 working days notice if you wish to destroy duty suspended cider outside your registered premises. You must give details of the proposed method of destruction. You must satisfy us that your proposed process will destroy the intrinsic nature of the cider.

Working days excludes Saturdays, Sundays and public holidays.

11.11 Information you must give

You must contact the Excise Enquiries helpline in writing, giving the following details:

  • why you wish to destroy the goods

  • details of the goods

  • the amount of duty involved

  • where and when the proposed destruction will take place

  • the method of destruction

11.12 Are there any conditions for duty suspended cider destroyed away from registered premises

Yes. If the cider is removed from registered premises to be destroyed at a specialist destruction site, the following conditions apply.

The following conditions have the force of law and are made under Regulation 12(e) of the Cider and Perry Regulations 1989:

  • there must be a complete audit trail which confirms the cider has been destroyed

  • the destruction of the cider must be supervised by either an Authorised Company Representative (ACR) of the cider maker, or a person within the specialist destruction company who has been appointed by the cider maker to supervise the destruction on their behalf. This person must be at management or supervisory level

  • a Certificate must be obtained from the company as evidence of destruction

12. Products for reprocessing

12.1 To re-ferment cider or residues which are still in your registered premises

You may re-ferment any cider or residues which are:

  • taken from duty-unpaid stocks on your registered premises

  • added to a fermenting vessel in the course of preparing for fermentation and before cider is drawn off

Enter the quantity of cider involved in your production records. Make sure your records are accurately and promptly updated with the details so that we can verify the quantities used in this manner.

12.2 Reprocessing duty paid cider which has been returned to your registered premises

You may be eligible to claim a refund of the Excise Duty paid on cider which has been returned to your registered premises for reprocessing — read section 13.

13. Relief of duty on cider which has become spoilt or otherwise unfit for use

13.1 If cider becomes lost or spoilt on your registered premises

We’ll not require you to pay duty on any cider which becomes accidentally lost or spoilt on your registered premises — for further details, read section 11.

13.2 If cider becomes spoilt or otherwise unfit for use after leaving your registered premises, or being constructively removed

Cider which you’ve removed from your registered premises on payment of duty may later become spoilt or unfit for use. You may claim a refund of the Excise Duty paid on any cider returned to your premises provided the cider:

  • was produced by you

  • has become spoilt or otherwise unfit for use

  • has not undergone any further process or dilution since it left your premises

13.3 Excluded spoilt cider

The following are excluded:

  • unconsumable cider (for example, sediment in cask-conditioned cider) on which duty was not charged is ineligible for relief

  • adulterated cider (that is, cider containing additions which we have not approved) is ineligible

  • cider for which no satisfactory audit trail is available

If any cider becomes spoilt more than 3 years after the duty was paid on that cider, you cannot claim relief.

13.4 Do I have to destroy the spoilt cider to claim duty relief

No, the spoilt cider may be either destroyed or reprocessed.

13.5 What does reprocessing include

Reprocessing includes the following operations:

  • the mixing of one cider with another (or others) on registered premises

  • the filtering or repasteurising of cider

13.6 Claiming relief

You must keep a spoilt cider record containing the particulars shown in paragraph 13.13.

13.7 Destroying spoilt cider

Subject to any notice of destruction being required (read paragraphs 13.9 and 13.10), you may destroy spoilt cider at a time of your own choosing. However, entitlement to reclaim duty on spoilt cider will depend on the following conditions being met.

The following conditions have the force of law and are made under Regulation 25(2) of the Cider and Perry Regulations 1989:

  • a full audit trail is maintained

  • requirements of other regulatory authorities are observed (for example, environmental)

  • proper control practices are maintained, including appropriate action at management and supervisory levels

13.8 Additional conditions for reclaiming duty on cider destroyed away from registered premises

The following conditions have the force of law and are made under Regulation 25(2) of the Cider and Perry Regulations 1989:

(a) Destructions in pub cellar

  • there must be a complete audit trail which confirms the cider has been destroyed and that it was duty paid

  • the destruction of the cider must be supervised by a responsible representative of the cider maker, for example, an Authorised Company Representative (ACR), the ACR must be appointed by the cider maker as an ACR in their records and be trained in that cider maker’s requirements, this condition also applies to an ACR who supervises destructions for more than one cider maker

The requirements of other regulatory authorities must be observed.

(b) Destructions at specialist destruction sites

  • there must be a complete audit trail which confirms the cider has been destroyed and that it was duty paid

  • the destruction of the cider must be supervised by either an ACR of the cider maker, or a person within the specialist destruction company who has been appointed by the cider maker to supervise the destruction on their behalf, this person must be at management or supervisory level

  • a Certificate must be obtained from the company as evidence of destruction

(c) Spoilt cider relief will depend upon there being evidence of a full credit of the duty paid value, or replacement of the goods to your customer (or owner of the goods at the time they became spoilt)

13.9 Notice of destruction

Our officer will advise you if you need to give notice (read paragraph 13.10), otherwise you can destroy the cider whenever you wish.

13.10 Giving notice of destruction

If notice is required, you must give us at least:

  • 2 working days notice if you wish to destroy cider in your registered premises

  • 5 working days notice if you wish to destroy cider outside your registered premises

You must give details of the proposed method of destruction.

Working days excludes Saturdays, Sundays and public holidays.

13.11 To destroy spoilt cider

You must destroy cider in a way acceptable to us and which makes it unsaleable as a beverage.

13.12 Making a claim

At the end of the accounting period, total the entries in your spoilt cider record of all cider destroyed or reprocessed and transfer the total to your cider duty account. When you submit your next monthly return, deduct the duty you’re reclaiming by entering it against lines 21 to 24 on the reverse of the EX606 as appropriate and carry the total to line 38.

Remember, when auditing claims we examine your business records and any supporting evidence. If we’re not satisfied with your explanation and supporting evidence, we’ll require you to repay the duty you claimed.

13.13 Particulars of the spoilt cider record

The following requirements have the force of law and are made under Regulation 26(1) (d) of the Cider and Perry Regulations 1989

When cider is either returned to the registered premises for destruction or destroyed remotely, you must enter the following particulars in the destruction section of your spoilt cider record:

  • the total volume of spoilt cider destroyed

  • the strength of the spoilt cider destroyed

  • the date and time of the destruction

  • the place and method of destruction

  • the volume and strength of the cider in each container from which the spoilt cider was directly destroyed

  • evidence of the amount of duty charged or paid

  • the amount of spoilt cider relief claimed

  • the description of the cider returned by each purchaser in respect of which a claim is made

  • the name and address of each purchaser

  • the numbers and sizes of each container in which the cider was returned by each purchaser returning the cider

When cider is returned for reprocessing, enter the following particulars in a reprocessing section of your spoilt cider record:

  • the total volume of cider reprocessed

  • the strength of the cider reprocessed

  • the date and time the cider was returned for reprocessing

  • the volume and strength of the cider in each container in which it was returned for processing

  • evidence of the amount of duty charged or paid

  • the amount of relief claimed

  • the description of the cider returned by each purchaser in respect of which a claim is made

  • the name and address of each purchaser

  • the numbers and sizes of each container in which the cider was returned by each purchaser returning the cider

Unless we allow a longer period, your spoilt cider record must be completed within one hour of reprocessing taking place.

When keg empties are returned to the registered premises and residues removed for destruction, you must enter the following particulars in the destruction section of your spoilt cider record:

  • the total volume of keg residue destroyed

  • the strength of the keg residue destroyed

  • the date and time of the destruction

  • evidence of duty charged or paid

  • the amount of relief claimed

Residues from returned kegs (which contained duty paid cider) must be decanted into a separate vessel and accurately measured to determine the quantity for relief. Residues from kegs returned from export do not qualify for this relief.

Residues are not considered to be spoilt cider and they do not meet the provisions for spoilt cider relief under the Cider and Perry regulations 1989. However, as a concession and for administrative purposes, residues can be entered in the spoilt cider record and duty can be claimed, along with duty on spoilt cider, on the cider duty return. Alternatively and subject to certain conditions, provision is also available for reclaiming duty on keg residues under the Excise Goods (Drawback) Regulations 1995.

At the end of the accounting period, total the entries in the spoilt cider record of all destroyed and reprocessed cider. Transfer the total to your cider duty account for claiming relief on your cider duty return.

14. Samples

14.1 What duty-free samples can I take

14.1.1 Production and reference samples

You may take these for analysis and organoleptic appreciation (but not consumption) provided you enter the quantities and reasons for removal in your samples records.

The samples should be used up in tests, destroyed or returned to process when you’ve finished with them.

14.1.2 Genuine ‘trade samples’

You may take these provided you enter the quantities and reasons for removal in your samples records. Trade samples must:

  • not be intended for consumption

  • be restricted to quantities not exceeding 1 litre per product

  • be clearly labelled ‘NOT FOR SALE’

  • be supplied to a wholesaler, distributor or a potential trade customer

There must be a genuine trade purpose for supplying the samples, for example, for analysis and tests to be carried out on the cider before purchase.

Cider used for promotions and for tastings at, for example, trade fairs, shows, exhibitions and supermarkets must be duty-paid.

If the samples are not supplied free of charge you must pay duty on them.

14.2 What duty-paid samples can I take

You may take duty-paid samples for any business purpose. There is no restriction on size or on the number you take. You should pay duty in the normal manner and record details in your business records.

15. Duty on domestic consumption

15.1 Cider that you or your employees drink

If you’re a grower who produces cider from your own fruit you may deliver from your premises, duty-free, approved quantities of cider for your own domestic consumption, or for drinking free of charge by your employees.

The term grower refers to a person who owns or leases orchards for which they are responsible for the cultivation, nurturing and harvesting thereof. This need not be done personally, the grower may contract others to carry out the work for them, but they are responsible for the supervision of any contracted work.

The term domestic consumption means consumption or use by:

  • the grower and the grower’s family or, in the case of a limited or public company, its directors

  • the grower’s employees and guests

15.1.1 Basis for the entitlement to relief

The entitlement is based on the quantity of cider produced in the preceding calendar year (January to December) and must not exceed the actual quantity produced.

So, if no cider is produced in the preceding calendar year there is no entitlement to domestic consumption. No part of your entitlement can be carried forward from one year to the next.

15.2 Working out domestic relief

You may claim domestic consumption relief on cider you use for your own domestic drinking or for drinking free of charge by your employees or guests.

If you wish to claim this relief, you must record the details in your business records stating how much cider is to be used for each purpose. There is no upper limit on the amount of relief you can claim. However, you must be able to satisfy us that your claim is not excessive. You’ll be liable to pay duty on any quantity overclaimed.

15.3 Paying duty on cider given to visitors

As long as:

  • no charge is made for admission to the premises

  • no charge is made for the cider

  • the cider is supplied by the glass and not in bottles or other take away packaging

You may regard the visitor as a guest and the drink consumed may be taken from your domestic consumption allowance.

16. Removals from cider premises

16.1 Removals to pay duty on

To summarise information from previous sections of this notice, duty must generally be paid on all removals of cider from your registered premises for the following purposes:

  • for UK consumption (usually known as a removal to home use)

  • when cider is constructively removed — read paragraph 5.13

Duty must also be paid if:

  • the cider has been lost

  • other irregularities are discovered

  • you’re no longer registered

  • the premises in which you’re holding the cider cease to be registered premises

16.2 Removals without paying duty

Provided you comply with any conditions HMRC may impose, you may remove cider from your registered premises without paying duty for the following purposes:

  • exportation, removal to the Isle of Man or shipment as stores — read sections 17, 18and 19

  • supply to diplomats and visiting forces within the UK

  • supply from Northern Ireland premises to entitled organisations in EU countries — read section 20

  • removal to another cider premises — read section 21

  • deposit in an excise warehouse — read section 22

  • removal to the premises of a vinegar maker for use in making vinegar

  • use as trade samples — read section 14

You may also remove cider without paying duty, if it is for your own consumption, as long as the cider is produced from ingredients that you’ve grown — read section 15.

You must record all removals in your business records.

Any shortage in removal or transit will be charged with duty if you cannot give us a satisfactory explanation.

16.3 Security for duty

You’ll need financial security to guarantee the duty on cider in duty suspension for movements from Northern Ireland to an EU country.

The guarantee must be:

In certain circumstances, further guarantees may be required for the holding and movement of cider within the UK.

For further information on financial guarantees — read section 4.

16.4 Documentation required

All intra UK movements of cider will need to be submitted through the Excise Movement and Control System (EMCS) unless they qualify for the simplified procedures, read paragraph 21.2. An electronic administrative document (eAD) will have to be raised on EMCS before the movement can start.

EMCS automatically allocates an Administrative Reference Code (ARC) that uniquely identifies the movement. The ARC will be on the printed copy of the eAD or should be noted on the commercial document and must travel with the goods.

For further information on EMCS procedures, read receive goods into and remove goods from an excise warehouse (Excise Notice 197).

Duty suspended and duty paid movements between Northern Ireland and EU countries will also need to be submitted through EMCS.

If movements of cider are under simplified procedures and are as described in first bullet point of paragraph 21.2, your normal commercial despatch documents will be suitable if they contain all the following information:

  • the name and address of your premises

  • a unique reference number

  • the name and address of the premises you’re sending the cider

  • the date of despatch

  • a description of the cider, including the quantity

  • a statement indicating that the cider is being moved in duty suspension

  • you’ve been paid or expect to be paid in cash for the supply of cider in duty suspension (or for any service you provide in relation to cider in duty suspension), read section 24

17. Removals of cider from registered premises in Northern Ireland to EU countries

This guidance only applies to approved persons and premises in Northern Ireland.

17.1 Northern Ireland — removing cider to EU member states

All movements of cider between Northern Ireland and an EU member state will need to be submitted through EMCS.

Find more information about this system in receive goods into and remove goods from an excise warehouse (Excise Notice 197) and Excise Notice 204b. You may remove either duty suspended or duty-paid cider to EU member states, but the procedures and requirements are different.

17.2 Northern Ireland — procedures to follow to remove duty suspended cider to EU member states

You must follow the detailed procedures set out in receive goods into and remove goods from an excise warehouse (Excise Notice 197) which include the following requirements:

  • you must have financial security (guarantee) in place, the minimum level of security for movements is £20,000

  • you must make sure that you’re sending the cider to a warehouse or a registered consignee which the fiscal authorities in that member state have approved to receive that type of cider

  • you must access EMCS and raise an eAD before the movement starts and obtain an ARC that’ll uniquely identify the movement

  • you must receive a valid report of receipt confirming that the consignee received the cider

17.3 Northern Ireland — sending duty suspended cider to a non-registered trader or private individual in an EU member state

If you’re sending the cider direct to a non-registered trader then you must make sure that the duty is paid prior to the cider leaving your registered premises. You may be able to reclaim the duty as drawback — read paragraph 17.4.

If the non-registered trader appoints an agent who is authorised to receive duty suspended excise goods, then UK duty does not need to be paid. However, the movement must be submitted through EMCS, with the agent shown as the consignee on the eAD.

If you’re sending the cider to a private individual (rather than a trader), this is known as distance selling. You must make sure that the duty is paid prior to the cider leaving your registered premises. You may be able to reclaim the duty as drawback — read paragraph 17.4.

Additionally you, as the seller, are responsible for ensuring that the duty is paid in the member state of destination. Further information on distance selling can be found in receive goods into and remove goods from an excise warehouse (Excise Notice 197) receipt into and removal from an excise warehouse of excise goods.

17.4 Northern Ireland — despatching duty-paid cider to EU member states

The duty in the member state of destination must be secured before the despatch of the goods and then paid on receipt. How this is done depends on the rules in the receiving EU member state. Unless the goods are being despatched to a private individual (read paragraph 18.3), the goods must follow the instructions set out in Excise Notice 204b.

You may be able to reclaim the UK duty on the grounds that you despatch. In order to reclaim the duty, you must observe the conditions of the drawback system which are contained in Notice 207 Excise Duty: drawback.

Drawback is a relief which provides for the repayment of Excise Duty paid goods that have not and will not be consumed in the UK.

18. Exports of cider

18.1 Procedures to follow to export duty suspended cider

All movements of cider from your premises to the place of export must be submitted through EMCS and be covered by a movement guarantee, unless a simplification is available.

You must follow the procedures set out in receive goods into and remove goods from an excise warehouse (Excise Notice 197) when you’re consigning duty suspended cider from the UK to other countries.

All movements of cider must be submitted through EMCS and be covered by a movement guarantee (for indirect exports, this also includes the part of the journey from registered premises to the UK port or airport of departure).

Guidance on EMCS including completion of an eAD and movement guarantees, can be found in receive goods into and remove goods from an excise warehouse (Excise Notice 197).

You should check if you need to declare goods you bring into or take out of the UK.

18.2 Customs declaration to use

You must complete an Export Declaration. Information and guidance is contained in the Tariff, Volume 3, parts 1 and 2.

18.3 Obtaining evidence of export

Providing the correct procedures have been followed for exports (direct and indirect) to non-EU countries using EMCS, HMRC will send you a report of export through EMCS which discharges the movement. Where no report of export is given for any reason, HMRC will issue a report of rejected export (an IE839 message). On receipt of an IE839 message, you may be requested to provide alternative evidence of export as shown in receive goods into and remove goods from an excise warehouse (Excise Notice 197).

For direct exports made using Customs Supervised Exports (CSE) previously known as Local Clearance Procedures (LCP) from your premises (read paragraph 21.2), you should receive a ‘departure message’ from Customs Handling of Import and Export Freight (CHIEF) which should be retained as proof of export. From 30 March 2024, the Customs Declaration Service will be the UK’s single customs platform, all businesses will need to declare goods through this service.

You may be liable for duty if you cannot produce evidence that cider removed from your premises has been exported from the UK or, in the case of Northern Ireland, through an EU member state.

Further information on reports of export, CHIEF and CDS departure messages and alternative evidence of export can be found in receive goods into and remove goods from an excise warehouse (Excise Notice 197).

18.4 Exporting duty paid cider

If you export duty paid, provided certain conditions are met, you may reclaim the duty under the Excise Duty Drawback system. For further details, read Excise Notice 207: Excise Duty drawback. To reclaim the duty, you must be able to produce evidence that the cider left the UK.

18.5 Supplying duty suspended cider from Northern Ireland to entitled organisations in EU member states

You must obtain an order together with an exemption certificate when supplying cider in duty suspension from Northern Ireland to entitled international organisations, embassies and forces located in the EU. You must use EMCS for the removal of cider from your premises. You’ll find more information on this and the procedures to follow in receive goods into and remove goods from an excise warehouse (Excise Notice 197).

18.5.1 Small producers in Great Britain and in Northern Ireland exporting cider to outside the EU

If the country you are exporting to operates a small cider producer’s scheme, the consignee may ask you to provide a certificate, endorsed by HMRC, that the cider you’re exporting is small producer’s cider produced in the UK. This is so they can establish in advance of the importation to their country that the producer in the UK and the cider is eligible under their rules. It is your responsibility to be aware of the rules and production volume limits of the small producer’s cider scheme in the country you are exporting to, so that their requirements are met.

If a certificate is required, you will need to make a self-declaration of your production volumes which HMRC will certify. The following process applies:

  • copy the certificate template shown at section 18.6 and paste or save as a word document

  • complete the first part of the document, then print and sign it

  • scan the document and attach to an email

  • send the email to: nru.alcohol@hmrc.gov.uk

  • the Excise Processing Teams will validate by completing the ‘Certification — For Official Use’ part of the document and return it to you

The process is temporary until a new print and post iform is available on GOV.UK.

You’ll need to use EMCS when moving cider in duty-suspension to the place of export.

The following statement that cider is ‘small producer’s cider’ will be required on the eAD:

‘It is hereby certified that the product described has been produced by an independent producer of fermented beverages other than wine and beer.’

The annual production of alcoholic beverages of the small independent producer shall be declared in box 17n of the administrative document.

This statement will let the person who removes the cider from duty-suspension to establish that the cider is small producer’s cider.

A movement guarantee is required for exports.

For more information on deliveries and exports through EMCS, read receive goods into and remove goods from an excise warehouse (Excise Notice 197).

18.5.2 Small producers in Northern Ireland moving cider in duty suspense to the EU

If the country you are moving cider to operates a small producer reduced duty rate for cider you will need to provide information on EMCS to show that the cider meet the small producer requirements. In box 17 of the eAD the following statement that cider is ‘small producer cider’ will be required:

‘It is hereby certified that the product described has been produced by an independent small producer.’

The annual production of alcoholic beverages of the small independent producer shall be declared in box 17n of the administrative document.

A movement guarantee is required. For more information on deliveries through EMCS, read receive goods into and remove goods from an excise warehouse (Excise Notice 197).

18.6 Small producer cider export declaration

Production capacity certification for the removal of small producer cider from the UK

I CERTIFY that the below mentioned producer (enter producer name and address as per producer certificate):

XXX XXX XXX XXX

Excise number: (enter excise number as per producer certificate)

Departmental Trader Registration Number: (enter DTRN as per producer certificate)

Meets the cumulative conditions of the following criteria:

  • the producer has an annual commercial production of (enter amount) hectolitres of cider

  • the producer is legally and economically independent of all other producers

  • the producer uses production equipment that is physically distinct from all other producers

  • the producer does not produce cider under licence

Full name: …………………………

Signature: …………………………

Date: ………………..

Certification — For Official Use

I certify that the above declaration is consistent with the production records for the year ending 31 January 20XX, of the above-mentioned producer.

HMRC Officer Full Name: …………………………

HMRC Address: …………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………..

Signature of HMRC Officer: …………………………

Date: ………………..

Official HMRC Stamp

19. Removal of goods to HM Ships and as ships’ stores

19.1 Removing cider to HM Ships

HMRC allows certain HM Ships to receive cider free from Excise (and Customs) Duty. These removals are treated as exports, with the point of exportation being the delivery of the cider to the ship.

Movements to HM Ships are not considered to be in duty suspension and, therefore, do not move under EMCS procedures. You must complete commercial documentation for the removal of cider from your premises.

You’ll find more information on this and the procedures to follow in receive goods into and remove goods from an excise warehouse (Excise Notice 197).

19.2 Removing cider as ships’ stores

You may remove cider from your premises to be shipped as stores on board ships within the UK.

These movements are not considered to be in duty suspension but supplied under relief and, therefore, do not move under EMCS procedures.

The ship’s master must get prior authorisation from HMRC to load new stores onto their vessel. This authorisation is granted on form C945. You should ask to see a copy of this form and keep a photocopy for your records.

You must complete commercial documentation for the removal of cider from your premises. Section 14.5 of receive goods into and remove goods from an excise warehouse (Excise Notice 197) gives details of the information required on the document.

You must satisfy us that the cider has been shipped as stores.

20. Supplies to diplomats and visiting forces within the UK and to entitled organisations

20.1 Supplying duty suspended cider to diplomats and visiting forces within the UK

You must have an official authorisation for the delivery of the cider. You must complete specific documentation for the removal of cider from your premises. You’ll find more information in Notice 431: visiting forces and receive goods into and remove goods from an excise warehouse (Excise Notice 197).

21. Removals of cider from one registered premises to another without payment of duty

21.1 Removing cider to other registered premises without payment of duty

All intra UK movements of cider will need to be submitted through EMCS unless they qualify for the simplification procedures, read paragraph 21.2.

You may only remove cider to:

(a) another registered cider maker’s premises for:

  • blending or mixing with other ciders

  • conditioning and bottling or kegging

  • rendering sparkling, destruction

(b) a licensed other fermented products producer’s premises for use in the production of other fermented products

You’ll be responsible for the duty on the cider until you receive a receipt. The receiving cider maker or other fermented products producer must:

  • complete a report of receipt, if the movement is submitted through EMCS

  • sign the cider duty receipt (for example, the delivery note) if under simplified procedures

The receiving cider maker or other fermented products producer must issue a receipt within 5 days of the date of receipt of the cider in their registered or licensed premises. If you do not receive a receipt, you should contact them. If you fail to obtain a receipt within 4 months, you’ll be liable for the duty due on the cider. If you subsequently receive a receipt, you may credit your duty account with the appropriate amount of duty.

When cider is delivered to home-use from the receiving cider premises, duty will become due. Duty must be paid by the maker who finally delivers the cider to home use.

Except in the case of bottlers or packagers returning cider to the premises from which it was received, finished or packaged cider must not be moved, without payment of duty, from one set of registered premises to another.

21.2 Simplification procedures

Simplification procedures apply to certain UK movements and allows for cider to be moved under duty suspension using commercial documentation or Customs documentation instead of EMCS. These procedures are limited to:

  • cider moving between UK registered cider makers or 3rd party packagers or excise warehouses approved to receive and store the cider — ownership of the cider must remain with the cider maker during the course of the movement

  • movements for direct export only from the UK where the dispatching cider maker is authorised for CSE, formerly LCP and can provide a full customs export declaration — movement guarantee details must be shown on the declaration — further information can be found in receive goods into and remove goods from an excise warehouse (Excise Notice 197)

If movements do not meet the criteria, then it will be necessary to use EMCS.

21.3 What is a finished and packaged product

This is any product which is kegged, canned, bottled or otherwise packaged and products which will not undergo any further process of production.

22. Removal of cider to an excise warehouse

22.1 Removing cider to an excise warehouse

All intra UK movements of cider will need to be submitted through EMCS unless they qualify for the simplification procedures, read paragraph 21.2.

You may remove cider, without payment of duty, to an excise warehouse (approved under section 92 of the Customs and Excise Management Act 1979) for the following purposes:

  • export, shipment as stores or removal to the Isle of Man

  • use in the manufacture of goods allowed to be produced in an excise warehouse

  • bottling

  • packaging

  • storage and subsequent delivery to home use or another warehouse

  • rendering sparkling

In the case of finished and packaged product, each package must carry a satisfactory identifying mark and number. Containers must be full and each case must hold containers of uniform size.

If you send duty suspended cider to an excise warehouse for bottling, packaging or storage, you’ll need to be approved as a registered owner of warehoused goods under the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (SI 1999/1278). You’ll find more information on this and the procedures to follow in registration and approval of excise goods held in duty suspension (Excise Notice 196).

22.2 Documents that must accompany the cider

If the movement is under EMCS, an eAD will have to be raised on EMCS before the movement can start. EMCS automatically allocates an ARC that uniquely identifies the movement. The ARC will be on the printed copy of the eAD or should be noted on the commercial document and must travel with the goods.

If the movement is under simplified procedures and is as described in first bullet point of paragraph 21.2, your normal commercial despatch documents will be suitable if they contain all the following information:

  • the description of the cider

  • its alcoholic strength

  • details of the quantity contained in each package (and if appropriate, the capacity of each container)

  • the total quantity sent

Keep a copy of the despatch document and the warehousekeeper’s receipt for your own records. For further details on the procedures for inter-warehouse removals — read receive goods into and remove goods from an excise warehouse (Excise Notice 197).

23. Receipts from other registered premises or excise warehouses

23.1 Cider received into your registered premises from other registered premises or excise warehouses

All intra UK movements of cider will need to be submitted through EMCS unless they qualify for the simplification procedures.

On receipt of cider, you must:

  • inspect the delivery vehicle to make sure that it is secure and any locks and seals are intact

  • examine all containers, for example, externally for signs of damage

  • check the delivery against the document accompanying the cider

  • issue a receipt within 5 days of the cider being received — if movement under EMCS, this will be a report of receipt or, if under simplified procedures, a certificate of receipt (for example, copy of delivery note) signed by an authorised person

  • record issue of the receipt

  • enter the quantity received into your stock records

  • keep the accompanying document

If you discover a discrepancy between the cider received and the accompanying document, you must issue a receipt only for the cider you actually receive. Show the discrepancy clearly on the certificate of receipt or include an inventory of the shortage or loss in the report of receipt.

The cider received becomes part of your stock and is subject to the same rules as the product you produce on your registered premises.

Remember, if you’re not approved as an excise warehouse, you can only receive cider in a ready for sale state if you produced it yourself.

24. Notification of cash transactions

24.1 Notifying us if you’re paid in cash for the supply of cider

As a registered cider maker, you’re required to notify us if you’ve been paid, or expect to be paid, in cash for the supply of duty suspended cider exceeding £9,000 (or equivalent in other currencies).

24.2 Notifying of supply

You must complete form W7 Notification of cash payments for alcohol goods or alcohol related services in duty suspension or contact the excise enquiries helpline.

For information on completion of the W7, refer to the explanatory notes on the reverse of the form.

You must send the completed form to the email address shown on the W7.

If you’re paid, or expect to be paid, in 2 or more instalments, which individually are below the £9,000 notification threshold but in total will exceed this amount, you must also notify us on form W7 when the first cash payment is received.

Provided you’ve notified the transaction to us, you do not need to wait for us to respond to receipt of the W7 before removing duty suspended cider to other UK registered premises, UK excise warehouses or EU member states.

You’re also required to notify us of any cash payments received (exceeding £9,000) for any service you provide relating to duty suspended cider, for example, storage facilities, handling charges, packaging of cider or, in the case of Northern Ireland, use of an Excise movement guarantee.

25. List of permitted cider and perry ingredients

25.1 General

Apple aromas, juice and wine

Apple aromas (natural only) may only be derived from apples and must retain the typical characteristics of apples. They must only be used in the restoration of flavour rather than its enhancement.

Apple juice (fresh or concentrate) is limited to 25% if used in the making of perry.

There’s no limit on apple wine but it must only contain ingredients permitted in the making of cider and perry.

Pear aromas, juice and wine

Pear aromas (natural only) may only be derived from pears and must retain the typical characteristics of pears. They must only be used in the restoration of flavour rather than its enhancement.

Pear juice (fresh or concentrate) is limited to 25% if used in the making of cider.

There’s no limit on pear wine but it must only contain ingredients permitted in the making of cider and perry.

Vinegar

Cider vinegar is limited to the quantity necessary to adjust acidity.

Perry vinegar is limited to the quantity necessary to adjust acidity.

Ingredients with limits set by current food legislation

The following ingredients have limits set by current food legislation:

  • acesulfame-K (E950)
  • acetic acid
  • ascorbic acid and its salts (E300 — E302)
  • aspartame (E951)
  • carbon dioxide
  • citric acid and its salts (E330 — E333)
  • dimethyl dicarbonate (Velcorin) (E242)
  • lactic acid and its salts (E270, E325, E326)
  • malic acids and its salts (E296, E350a, E351b, E352a)
  • saccharin (and Na, K, and Ca salts) (E954)
  • sorbic acid and its salts (E200, E202, E203)
  • sucralose (E955)
  • sulphur dioxide and its salts (E220 — E224, E226 — E228)
  • salt (sodium chloride)
  • tartaric acid and its salts (E334 — E336)
  • water

Ingredients with no limits

The following ingredients have no limits:

  • cider — out of condition
  • de-alcoholised concentrated cider (Cidrasse) — must only be produced from ingredients permitted in the making of cider
  • neo-hesperidine
  • nitrogen
  • perry — out of condition
  • sugars and sugar syrups for example:
    • high fructose corn syrup and high fructose syrup
    • fructose hydrolysed starch and hydrolysed starch syrup
    • glucose
    • liquid sugars
    • sucrose
    • sugar

25.2 Colourings

Colourings and other substances which may impart colour may only be used to produce cider or perry in the colour range — straw, gold and golden brown.

These additives are:

  • acid brilliant green BS (E142)
  • anthocyanin (E163)
  • caramel (E150a, E150b, E150c, E150d)
  • carmoisine (E122)
  • cochineal (E120)
  • indigotine (E132)
  • mixed carotenes (E160a, E160b, E160c, E160d, E160e)
  • Ponceau 4R (E124)
  • quinoline yellow (E104)
  • sunset yellow (E110)
  • tartrazine (E102)

25.3 Processing aids

These are materials used in the processing of cider and perry. There’re no restrictions on the use of processing aids provided they do not change or alter the characteristics of the cider or perry. Small residual traces of these aids may remain in the final product provided they do not contribute to the colour or flavour of the cider or perry.

The following are examples of processing aids:

  • decolourizers such as charcoal
  • enzymes such as pectinase
  • filter aids such as:
    • cellulose
    • kieselguhr
  • fining aids such as:
    • bentonite
    • gelatin
    • isinglass
    • tannin

Other miscellaneous processing aids include:

  • anti-foaming agents
  • calcium carbonate
  • on-exchange resins
  • lactic acid bacteria
  • microbial nutrients other than urea and its derivatives
  • yeast and yeast culture

In some ciders, yeasts and bacteria may be present in considerable numbers.

26. The actual strength method of calculating alcoholic strength

The method of determining the strength of cider is described in Schedule 2 of The Alcoholic Product (Excise Duty) Regulations 2023, which is reproduced in the section. HMRC will accept any method used to measure strength, so long as it produces a result that is equal to, or more accurate, than that described in the following guidance.

Method of determining the strength of cider

1.

(a) a representative sample is to be taken and, after first being cleared of sediment and gas by filtration, a definite quantity thereof by measure at the temperature of 20 degrees Celsius is to be distilled,

(b) the distillate is to be made up at the temperature of 20 degrees Celsius with distilled water to the original measure of the quantity before distillation,

(c) the strength of the distillate made up in accordance with subparagraph (b) is to be ascertained by determining its density in air at the temperature of 20 degrees Celsius by means of a pycnometer, and

(d) the strength of alcoholic product is to be taken to be the percentage of alcohol by volume in the table entitled ‘Laboratory Alcohol Table’ which corresponds to the density determined in accordance with paragraph (c) except that where the density so determined is between 2 consecutive numbers in the table aforesaid the strength shall be determined by linear interpolation.

2.

Where the result ascertained by the method specified in sub-paragraph (1) above is rendered inaccurate by the presence of substances other than alcohol that method shall be adjusted in such manner as can be approved for the purpose of producing an accurate result

‘Laboratory Alcohol Table’ means a table entitled ‘Laboratory Alcohol table’ showing the relation between density at 20 degrees Celsius and alcoholic strength of mixtures of ethanol and water expressed as percentage by volume at 20 degrees Celsius and percentage mass. Find a copy of the laboratory alcohol table for working out alcohol content.

27. Review and appeal procedures

27.1 Disagreeing with any decision made about your affairs

When we make a decision that you can appeal against, we’ll tell you and offer you a review. We’ll explain the decision and tell you what you need to do if you disagree.

For example with:

  • the amount of an assessment

  • the issue of a civil penalty

  • a decision specifically connected to the relevant duty

You’ll usually have 3 options. Within 30 days you can:

  • send new information or arguments to the officer you’ve been dealing with

  • have your case reviewed by a different officer

  • have your case heard by an independent tribunal

A review will be handled by a different officer from the one who made the decision. If you prefer to have an independent tribunal hear your case, you must write directly to the Tribunals Service.

27.2 Time limit to ask for a review

Yes. If you want us to review a decision, you must write to the person who issued the decision letter, within 30 days of the date of that letter.

We’ll complete our review within 45 days, unless we agree another time with you.

You cannot ask the tribunal to hear your case until the 45 days (or the time we agreed with you) has expired, or we have told you the outcome.

If you’re not satisfied with the review’s conclusion, you have 30 days within which to ask the tribunal to hear your case.

If we cannot complete our review within 45 days, or any time we agreed with you, we’ll ask you whether you’re willing to agree to an extension. If you do not agree to an extension, the review is treated as concluding that the decision being reviewed is upheld.

We’ll write and tell you this, you then have 30 days from the date of that letter to ask the tribunal to hear your case.

27.3 What to include in your request for review

Your request should set out clearly the full details of your case, the reasons why you disagree with us and provide any supporting documentation. You should also state what result you expect from our review.

27.4 If a review is not wanted

If you do not want a review, you may appeal to the independent tribunal. You need to send your appeal to the Tribunals Service within 30 days of the date on the decision letter.

27.5 More information

You can find more information about reviews and appeals in factsheet HMRC1.

28. Cider and perry definition

This is contained within Schedule 6(5) of The Finance (No. 2) Act 2023:

5. ‘Cider’ means a product which:

(a) is obtained from the fermentation of apple juice or pear juice;

(b) has been produced without the addition, at any time, of:

(i) another alcoholic product, or

(ii) anything, other than a permitted substance, which communicates colour or flavour;

(c) satisfies the juice content requirements (read paragraph 7); and

(d) is of an alcoholic strength of less than 8.5%.

6. In paragraph 5, ‘permitted substance’ means a substance that:

(a) appears to the Commissioners to be necessary for the purposes of producing cider (or perry), and

(b) is specified in a notice published by the Commissioners for the purposes of this Schedule.

7. For the purposes of paragraph 5, the juice content requirements are satisfied in relation to a product if:

(1) (a) qualifying fruit juice comprises at least 35% of the volume of the pre-fermentation mixture for the product; and

(b) the total of:

(i) the volume of qualifying fruit juice included in the pre-fermentation mixture, and

(ii) the volume of qualifying fruit juice added after fermentation begins, comprises at least 35% of the end product.

(2) ‘Qualifying fruit juice’ means apple or pear juice of a gravity of at least 1033 degrees.

(3) The ‘gravity’ of apple or pear juice in degrees is determined by:

(a) calculating the ratio of the weight of the volume of the juice to the weight of an equal volume of distilled water (both as at 20°C), and

(b) multiplying that ratio by 1000.

(4) ‘Pre-fermentation mixture’ means the mixture of juice and other ingredients in which the fermentation (from which the cider is obtained) takes place, as that mixture exists immediately before the fermentation process begins.

(5) If the cider consists of a blend of two or more products, each constituting cider, references in sub-paragraph (4) to the pre-fermentation mixture are to the pre-fermentation mixtures for each of those products taken as a whole.

8. (1) ‘Sparkling cider’ means cider which:

(a) if it is packaged in a closed bottle, either:

(i) due to the presence of carbon dioxide, the pressure in the bottle, measured at a temperature of 20°C, is not less than 3 bars in excess of atmospheric pressure, or

(ii) (regardless of the pressure) the bottle has a mushroom-shaped stopper held in place by a tie or fastening;

(b) if it is not packaged in a closed bottle, has characteristics similar to those of cider which (while packaged in a closed bottle) falls within paragraph (a)(i).

(2) Cider is to be regarded as having been rendered sparkling if:

(a) as a result of aeration, fermentation or any other process, it falls within sub-paragraph (1), or

(b) (if not previously rendered sparkling under paragraph (a)) it is transferred into a closed bottle which has, or the stopper of its bottle is exchanged for, a stopper of the kind mentioned in subsection (1)(a)(ii).

9. Rendering cider sparkling, at any time after the excise duty point in relation to that cider, is treated for the purposes of this Part as producing sparkling cider.

10.‘Still cider’ means cider that is not sparkling cider.

28.1 Key features are:

A pre-fermentation juice requirement. At least 35% apple or pear juice must be included in any mixture from which fermentation takes place.

A final product juice requirement. A minimum of 35% apple or pear juice must be included overall in making the final product.

Juice is the natural juice extract from apples or pears, but can include juice that has been diluted with water, or juice that has been concentrated or come from the dilution of concentrated juice. No other additions are allowed to juice but other ingredients may be used to make the resulting cider provided that the minimum juice content is met or exceeded in the final product.

Juice used both before and after fermentation begins must be of a gravity of at least 1033 degrees.

For the purposes of the pre-fermentation mix or for additions after fermentation has commenced it’s acceptable to dilute a higher gravity juice, to concentrate a lower gravity juice, or to add concentrated juice or a higher gravity juice to a lower gravity juice, to achieve a juice with a gravity not less than 1033 degrees.

The definition requires for both tests that a minimum of 35% of fruit juice is used with a minimum gravity of 1033 degrees. If a higher gravity juice is used then it’s acceptable to establish the volume in proportion to the 1033 minimum.

If 2 or more pre-fermentation mixes are blended, the pre-fermentation mixtures are taken as a whole for the purposes of establishing volumes and strengths. Similarly, if a cider is made by blending 2 or more ciders, the pre-fermentation mixtures for each of these ciders are taken as a whole.

The legislation and definition allow for the common industry practice of fermenting low gravity juice but, should the gravity of the juice lie below 1033 degrees, this alcoholic product does not fall within the definition of cider. It may be blended before duty becomes due with other cider to produce a final cider which meets the new juice requirements.

28.2 Mixture examples

Cider maker has 2 ciders that are to be mixed prior to duty becoming due. One has been produced from a minimum 35% juice content with a gravity of 1031 degrees and the other has been produced from a minimum 35% juice content with a gravity of 1044 degrees. A total volume of 150 litres of mixture are required. This method also applies to mixtures for the purposes of the pre-fermentation mixture.

28.2.1 Example 1

The mixture is made up as follows:

  • 10 litres with a gravity of 1031 degrees

  • 140 litres with a gravity of 1044 degrees

Divide the litres by the total volume of litres.

(10÷150) × 1031 = 68.7

Multiple this number by the gravity.

(140÷150) × 1044 = 974.4

Add the totals for each mixture to get the total gravity.

68.7 + 974.4 = 1043.1 degrees gravity

The mixture complies since it exceeds 1033 gravity.

28.2.2 Example 2

The mixture is made up as follows:

  • 140 litres with a gravity of 1031 degrees

  • 10 litres with a gravity of1044 degrees

Divide the litres by the total volume of litres.

(140÷150) × 1031 = 962.3

Multiple this number by the gravity.

(10÷150) × 1044 = 69.6

Add the totals for each mixture to get the total gravity.

962.3 + 69.6 = 1031.9 degrees gravity

The mixture does not comply since it is below 1033 gravity.

Once the minimum gravity test has been achieved, the proportional 35% test must be carried out.

29. Glossary

Term Description
Accounting period A calendar month, or other period as may be authorised.
Alcoholic strength (by volume) Ratio of the volume of ethyl alcohol contained in any alcoholic product to the volume of alcoholic product, including the alcohol (expressed as a percentage to one decimal place).
Authorised warehousekeeper Occupier or operator of a tax warehouse (see definition of tax warehouse).
Customs Duty Charges on imported goods levied under the Common Customs Tariff of the UK or EU, any other charges having equivalent effect and agricultural levy.
Duty point The time when the duty becomes payable, whether or not payment is deferred.
Duty suspension An arrangement, which allows goods liable to Excise Duty to be produced, processed, held, received and despatched without payment of duty.
Excise Duty The duty charged on cider under ALDA section 62.
Excise warehouse A place approved by HMRC under the Customs and Excise Management Act 1979 section 92 for the storage of goods on which Excise Duty is suspended.
Hectolitre One hundred litres.
Large pack Containers in excess of 10 litres (casks and kegs).
Other fermented products Any alcoholic product obtained from fermentation, or by mixing any alcoholic product with the product of alcoholic fermentation, which is not wine, beer, cider or spirits.
Our officer An officer of HMRC.
Package To put cider into tanks, casks, kegs, bottles or any other receptacles of a kind in which cider is distributed to wholesalers or retailers.
Product A description of cider according to its brand name, package size and alcoholic strength.
Registered cider-maker A person who makes cider for sale on any premises in the UK registered under ALDA section 62 (2) in respect of those premises.
Registered cider premises Any premises in respect of which a registered cider maker is registered under ALDA section 62 (2).
Rendering sparkling Cider or perry is rendered sparkling if:

it’s held in a closed bottle and has a pressure, due to carbon dioxide, at 20°C of not less than 3.0 bars above atmospheric pressure, or

regardless of pressure it’s held in a closed bottle which has a mushroom stopper held in place by a tie or fastening.
Small pack Containers of 10 litres or less (bottles and cans).
Spirits (anything over 22%) Spirits of any description (other than denatured alcohol) including all alcoholic products mixed with spirits, and all mixtures, compounds or preparations made with spirits.
Still cider Any cider which has not been rendered sparkling.
Strength Alcoholic strength.
Tariff Integrated Tariff of the UK.
Tax Warehouse Premises in which Excise goods may be produced, processed, held, received and despatched under duty suspension. Registered premises and excise warehouses are tax warehouses.

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