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The system is designed to ‘simplify and modernise the administration of returns and payments’

The government has rolled out a new digital service for UK alcohol producers.

The service, which will be available from tomorrow (1 March) will allow around 5,000 alcohol suppliers in the UK to manage their alcohol duty obligations via one monthly return and payment, accessible online

It will cover all alcoholic products they produce (beer, cider, wine, other fermented products, and spirits) across all their production premises.

Returns must be completed by the 15th day of the month for the previous month’s production activity. Payments must be cleared and received by the 25th day of the month, meanwhile.

Before submitting an alcohol duty return, businesses should apply the correct duty rates and check the gov.uk website to calculate the amount of duty they are required to pay.

To submit a return, businesses must first enrol using their Alcoholic Products Producer Approval ID.

All alcohol producers in the UK ought to have received an APPA ID this month, while new producers could apply online for registration and would subsequently receive an APPA ID and enrolment letter, HMRC said.

The new system would “simplify and modernise the administration of returns and payments”, it added.

It was announced as part of a package of measures in September 2022 that included new duty rates and reliefs introduced from 1 August 2023.

Since this time, alcohol duty has been calculated on a strength-based approach, whereby higher alcohol content products face higher rates of tax.