Alcoholic Drinks: Excise Duties
The question
To ask the Chancellor of the Exchequer, for what reason HMRC does not collect data on the number of wine producers claiming Small Producers Relief; and whether the Department plans to begin collecting such data to inform the evaluation of the 2023 alcohol duty reforms.
Answered by Dan Tomlinson
HM Revenue & Customs (HMRC) holds data on the volume of products on which Small Producer Relief (SPR) is claimed, however it is not possible to accurately attribute this amount to a specific number of producers.
HMRC does not approve producers for SPR as both eligibility and rates can vary annually, depending on production levels. Instead, producers self- assess their eligibility and calculate the correct rate, meaning there is no central record of SPR claimants.
In some cases, the duty is paid by someone other than the producer. For example, goods may move in duty suspension from the producer to an excise warehouse, which pays the duty. In other cases large producers may conduct processes, such as bottling, on behalf of several smaller producers and account for the duty on behalf of their customers when the goods are released.
These arrangements reduce burdens on small producers while accommodating common commercial practices. Although HMRC cannot determine a definitive number of producers claiming SPR, it assesses that very few wine producers will have claimed the relief due to the 8.5% ABV eligibility limit.
HMRC will evaluate the 2023 duty reforms using several data sources, including SPR clearance volumes. For the reasons stated there are no plans to collect additional data on the number of producers claiming SPR.
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