Received Certificate from HMRC

Get advice on making beer from raw ingredients (malt, hops, water and yeast)
Martin G

Re: Received Certificate from HMRC

Post by Martin G » Mon Feb 25, 2013 10:24 pm

boingy wrote:And of course the licensing is entirely separate from the HMRC stuff, which means there is a different set of hoops to jump through and a whole different set of people to keep happy, in this case the council. I can only hope that the council licensing department you deal with is of a higher calibre than the waste and recycling department I'm currently dealing with.
Yep, are your dealings with the council beer related?

I spoke to the council planning about a brew shed a while ago (project on hold due to a 'domestic authority' much greater than the local council!) and they were quite helpful and seemed happy with the scale, they asked if it was a hobby or commercial and did not raise licensing. I thought at the time that was where my contact with them would end, but on reflection it is probably a different department that deal with licensing, so I guess there is another conversation to be had. Here's the email exchange with the planners about the brew shed;

From Council
Thank you for your email.

In order to assist with your enquiry, I would be grateful if you could please provide the following information:

1. A sketch drawing or plan showing the dimensions of the proposed shed (including height) and location within the garden (indicating the distances to the boundaries);
2. I note your comment regarding the donation of casks to local charities, but please could you advise whether the proposed brewing is for personal purposes/a hobby, or if you intend selling the beer on a commercial basis?
3. What are the proposed hours and days of operation and will any staff will be employed?
4. Will any deliveries of equipment, ingredients or products will take place? How frequent would these be and how will they be managed?
5. Will any noise or smell be generated, and how will refuse or waste be disposed of?
6. Will the proposed use generate any visitors to the property?
7. Are any advertisements or signage proposed?

My reply
Thank you for your email, I have prepared and attached a sketch of what I hope to do. Below are the answers to your questions;

1. In the sketch I have placed the shed 30cm from the nearest boundary and over 5m from other boundaries and the house. I was originally thinking the shed would be made of wood, but I understand that I could build it from brick, is that correct?
2. The purpose is as a hobby, but if I donate to charity events then under customs and excise this counts as commercial.
3. I would brew no more than one day per week, which could be any day. It takes about 7 hours to prepare a brew, this period would be between 6am and 9pm.
4. One brew per week amounts to only 2 casks of beer [I over did this just to be sure, I'll never brew that much], this needs about a 20kg sack of grain, so maybe one delivery by hand from a small van per month, if that.
5. One of the final steps in the brewing process is a 60-90 minute boil, this generates a malty smell. The smell is no stronger than typical cooking smells, in my opinion. I currently boil my home brews in the garden and the smell is not very noticable. I intend to compost the waste for my veg patch and garden, it makes great compost.
6. I suppose some people may be interested in seeing the shed, set up or the process, but I would not be selling to people from the shed or trying to attract people to the shed to sell them beer from it.
7. No advertising on the property is intended, I may put a sign above the door of the shed or something.

Regards

Council reply
Thank you for your email and drawing.

Based on the information you provided, I am of the opinion that planning permission would not be required for the proposed shed, under Schedule 2 Part 1 Class E of The Town and Country Planning (General Permitted Development) Order as amended 2008, provided that the height of the shed does not exceed 2.5 metres. It may be constructed of brick or wood.

I would also advise that you contact us again should the nature of the use alter or intensify, so that we can reassess the proposals and advise accordingly.

Please note this is an officer's informal view based upon the information currently available. This information is given in the spirit of helpfulness and without prejudice to the consideration of any formal application that may be submitted. It does not in any way prejudice any further decision Solihull MBC may wish to make or override any other legal covenants. Should you require a formal determination, you may apply for a Certificate of Lawful Development; further details are available on the Planning Portal website at http://www.planningportal.gov.uk/permis ... ertificate.



Irrespective of any planning consideration you may require building regulations consent; I have passed your email to our Building Control team and they will respond in due course.

Building control said no permission was required, but advised about part P.

Martin G

Re: Received Certificate from HMRC

Post by Martin G » Mon Feb 25, 2013 10:38 pm

darkonnis wrote:I seem to remember that you yourself don't need a personal license to sell alcohol as I mentioned it before and the mrs said she could have done it for me (she has her license) its just a case of having someone licensed sell it for you, you also don't need the long course for publicans, its a brewers one for selling to businesses and individuals offsite (ie you deliver), selling from your house is a different beast entirely (ie, you dont deliver, people come to your property for collection/ to drink on the premises)

Also, am I correct in thinking you don't pay duty on beer you brew for yourself, but you have to mark it down as "research or testing" or something? Can't for the life of me remember where I read that though, might be the microbrewers hand book?

Grats anyway,
Cooky
Thanks, interesting, seems like I definitely need to make a call to the council.

There is a bit about experimental brewing in the notice, will have another look at that, thanks.

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alix101
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Re: Received Certificate from HMRC

Post by alix101 » Mon Feb 25, 2013 11:33 pm

seymour wrote:Fascinating, thanks for sharing. We don't have anything like this in the USA. Congratulations and good luck.
Not to distract from a good link ...what do you have to do in the US, knowing little I guess its more difficult .last time I was over I had to get my farther in law to buy me cigarettes :shock: I'm 33..and they still wanted his passport and hes 62...he was delighted. :D and he still didn't tell my wife :wall
"Everybody should belive in something : and I belive I'll have another drink".

alecwallace

Re: Received Certificate from HMRC

Post by alecwallace » Tue Feb 26, 2013 7:42 pm

Martin,

If you still need advice it may be worth contacting http://www.whitworthbrewing.co.uk/ as they're based in Shirley in their garage I think!

Martin G

Re: Received Certificate from HMRC

Post by Martin G » Tue Feb 26, 2013 8:04 pm

Thanks for that, yes I recently heard of them and will be in touch. I'd also be interested in sharing experience with anyone else that has done or has thought about this. For info here is the HMRC info;
http://customs.hmrc.gov.uk/channelsPort ... _CL_000232

I spoke to the Council Licensing dept today and they were very helpful. Apparently I would only need a licence if I sell direct to public. The lady was very certain that I would not need a licence to sell or donate to someone with a licence (club, premesis, temporary). The farmers market is also still an option if done under a temporary events notice as these do not also require a personal licence, conditions etc. may make this option unfeasible in practice though.

This is good news for anyone that wants to put their beer in an event, club, or even pub I guess. It seems you can even receive some money to cover costs, but go too far with that and you'd be a business with all of the baggage that would bring. The registering is free at the start but obviously there is the duty to pay on the beer, the paperwork, and risk of getting things wrong.

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seymour
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Re: Received Certificate from HMRC

Post by seymour » Tue Feb 26, 2013 8:20 pm

alix101 wrote:
seymour wrote:Fascinating, thanks for sharing. We don't have anything like this in the USA. Congratulations and good luck.
Not to distract from a good link ...what do you have to do in the US, knowing little I guess its more difficult...
Perhaps surprisingly, the homebrewing issue sounds less strict in the USA. Of course, we are the so-called-"united" STATES of America, and every state has different laws. You may have heard a recent news story in Alabama, police raided a beer store which sold some homebrew equipment, confiscating everything without warning or explanation, like something from a Prohibition-era gangster movie. The Homebrewers Association website summarizes the laws from all 50 states for easy reference: http://www.homebrewersassociation.org/p ... s/missouri

Fortunately for me, Missouri law allows for homebrewing 200 gallons of beer per year. Note, the household must contain a 21 year person, it doesn't say the brewer must be 21 years old, thus it is perfectly legal to brew your own beer long before you're allowed to buy beer. I have a friend who was thrilled to discover this loophole while still in high-school. :) It's also very relaxed about allowing you to share with friends, as long as you aren't collecting money. So this allows beer to be traded, shared at club meetings, mailed cross-country to homebrew contests, etc. Only recently have there been any legal concerns over beer festivals where homebrewers are serving their own beers and attendees pay an entrance fee. To be honest, I never understood how they got away with it so long, but there's a lot of talk about rewriting the law to officially allow that too!

Some people think the existing rules are ridiculously loose, but I feel it's more ridiculous that all these restrictive rules were put into place in the first place. I feel this all falls into the realm of "whatever you do in your own home behind closed doors...using harmless plants from the ground...as long as it isn't hurting anybody..." You catch my drift. Nowadays, to me anyway, it seems the whole debate is less about overreaching, hypocritical, puritanical moral and baseless public health arguments, but rather more about the government simply making sure they get their taxes anytime something is sold.

Martin G

Re: Received Certificate from HMRC

Post by Martin G » Mon Mar 04, 2013 8:11 pm

Well, I paid the duty on my first 'commercial' batch of beer a few days ago! Strangly satisfying, did it online, just had to make sure my registration number was in the reference. My first return for HMRC came today and when I calculated the duty on there it was a penny different, but other than that there was not too much head scratching. There was just one line of about three boxes to complete, repeat the duty in a couple more boxes and then sign. I phoned up just to be sure and the very helpful lady was very reasuring, and told me not to worry about the odd penny. The return for one month has to be completed by the 15th of the following month. When I said I was worried about completing the form if I was away on holiday and she said not to worry as they normally give it a week before chasing it up and would normally call before taking things further. Starting to think that now I have sorted my forms (bar a few tweaks) and been reassured by the HMRC I think I will stick with it for a while.

The bulk of my first 'commercial' batch is going to be at the Knowle Beer Festival on Friday and Saturday. The festival is being run by the local Round Table so I will get the fun of knowing my beer was in a festival and they get a free cask for the festival. This is actually all quite exciting! :D

bigdave

Re: Received Certificate from HMRC

Post by bigdave » Mon Mar 04, 2013 10:33 pm

I asked a brewer friend about how he brews for personal and he said you can just mark it down as research or product development (provided its not on a commercial scale).

Martin G

Re: Received Certificate from HMRC

Post by Martin G » Sun Mar 10, 2013 10:03 am

bigdave wrote:I asked a brewer friend about how he brews for personal and he said you can just mark it down as research or product development (provided its not on a commercial scale).
That's interesting, so a new brew or a process/kit change will be duty free!

My first 'duty paid' brew went really well at the festival, in fact it sold out first! Quite chuffed with that especially as there were some good beers there including Proper Job, some beers from Hop Back, Salopian, Fernades, Monkey, Rat, Oakham. It was good fun chatting to people about the beer etc.

darkonnis

Re: Received Certificate from HMRC

Post by darkonnis » Mon Mar 11, 2013 4:38 pm

Whats even better :) Is you should be able to write them off against your tax on commercial sales so essentially your brewing ingredients for those runs will be free.

jonnyt

Re: Received Certificate from HMRC

Post by jonnyt » Mon Mar 11, 2013 5:19 pm

Um Oakham Citra now thats what I call a real brew.

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