Cider duty: duty return and payment
Sections 5 and 7 of Notice 162 (HMRC website) give full details on calculating duty, budget changes, accounting for and paying duty, payment methods and completion of duty return.
The legal provisions for this are at regulations 8 - 12 of The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 and regulation 23 of the Cider and Perry Regulations 1989.
The person liable to pay the duty will be the registered cider maker who holds the cider at the duty point.
Registered cider makers will render a return (EX606) for each calendar month (standard accounting period). Exceptionally, when the revenue may be a risk, shorter accounting periods of one week can be required, for example, earlier failure to furnish or defaults or likely insolvency. Before imposing this requirement, managers should consult the Alcohol Policy team in order to be satisfied that there are sufficient grounds to justify this action.
At the end of each accounting period, cider makers must total up all cider removed from their premises to home use during the period, calculate the duty due and record it on their EX606 return.
Returns are to be sent to the Trader Accounting Payment System (TAPS) unit in Southend. They are responsible for sending out return forms to all registered cider makers and for monitoring payments. They liaise with the Debt Management and Banking Unit in cases of non-compliance.
Registered cider makers must pay the duty on the 15t h day of the month following the month for which duty was accounted.
Nil returns are required, even if there have been no removals to home use during the accounting period.
If a cider maker fails to submit a return on time, or fails to make a satisfactory payment, they will be liable to a penalty and we may issue an assessment for any duty we estimate would have been due.
A cider maker may also be liable to a penalty if their return is inaccurate and, as a result, they do not pay enough duty. Further information can be found in CIDER10210 ‘Inaccurate returns’ and paragraph 7.7 of Notice 162.