From a leading logistics provider

July 22, 2016
HMRC’s decision to simplify excise alcohol law

Johnston Logistics UK welcomes HMRC’s decision to simplify excise alcohol law.

HMRC has announced plans to simplify current excise alcohol law and procedures. Those plans will include:

—> simplifying tax across disparate alcohol regimes

—> digitising transactions in line with HMRC’s digital ambition for 2020

—> streamlining processes to support business growth

Rob McIndoe, Johnston Logistics UK, Finance Director, said “Any simplification of Excise law is to be welcomed because anything that streamlines the processes and makes it easier for us to work more efficiently has to be seen as a major step forward.”

According to Alan Powell, UKWA’s advisor on Excise Duty issues, “Excise law is long overdue an overhaul, so the proposals are very welcome. There are currently far too many different bureaucratic and often ancient obligations to trade in excise goods in different regimes, including requirements for licenses, registrations, approvals, authorisations and making entry of premises and plant. It is confusing for HMRC as well as the industry.”

For example, “within ‘production’ tax warehouse regimes, brewers, cider-makers and wine-makers currently work in periods and make a single period return, whereas in the warehousing tax warehouse regime, duty has to be accounted for when products are entered for removal from the warehouse and duty has to be paid before the goods can be removed from the warehouse. Under deferment, the duty may be deferred for 28 days but the accounting warrants have to be entered daily, unless HMRC has approved twice-monthly ‘scheduling’, which has no statutory basis and is, in effect, a ‘concession’.”

UKWA’s CEO Peter Ward commented “It is clear that the warehousing industry would welcome any changes that simplify and streamline the current process and reduce the administrative burden. The industry must consider the options and make its voice heard during the consultation process and UKWA will be taking soundings from its members to ensure that this happens.”

Bonded Storage HMRC