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bigduckontax, Accountant
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I am buying a micro brewery and have bee told we get 25% relief

Customer Question

I am buying a micro brewery and have bee told we get 25% relief on beer duty.
However do we also have to charge standard rate VAT to our customers
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Beer duty and VAt are entirely different tax regimes. Beer Duty is an Excise duty and VAT is, well VAT.
Yes, you do have to charge the standard rate of VAT to your customers and account for it in your quarterly returns. Your customers will, of course reclaim it as input tax.
I am having great difficulty in following your 25% relief on beer duty. I would view this with a very jaundiced eye and chack carefully before you take the plunge. Here are the current rates:
Beer
Alcohol type Rate per hectolitre per cent of alcohol in the beer
Beer - General Beer Duty £18.74
Beer - high strength:
Exceeding 7.5% abv - in addition to the General Beer Duty £5.29
Beer - lower strength:
Exceeding 1.2% - not exceeding 2.8% abv £8.62.
I do hope my answer has been of some help though.
Expert:  bigduckontax replied 2 years ago.
I think I may have found it though in the Gov UK web site:
'Reduced rates for small brewers
If you produced no more than 60,000 hectolitres of beer in the previous calendar year you may be entitled to a reduced duty rate. The reduced rates are part of the Small Breweries’ Relief scheme and have a sliding scale. Reductions start at 50% for production of 5,000 hectolitres or less and decrease for larger production volumes.'
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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