📘 Introduction to beer duty

Breww handles all your beer duty calculations for you. As long as you tell Breww everything that happens (production, sales, returns, etc), you won’t need to touch a calculator or keep manual records.

When does duty become liable?

In Breww, duty is calculated as the point the beer leaves the brewery. Whilst HMRC allows other options for calculating duty, such as on production, but these are really there to make calculating the duty easier and the most cash-flow efficient method is to calculate it when the beer leaves the brewery. While this might be the most complicated, you don’t need to worry about calculating it yourself, as Breww will do this for you. You simply need to ensure you mark your deliveries/collections as left duty suspense at the right time and Breww will do all the hard work for you.

Annual production estimate & settings

In order to calculate your beer duty correctly, we need your annual production estimate. You can set this in the beer duty section and will need to update it if your estimate changes. Breww will also automatically get you to review it every year on 1st January. You can also configure your ABV calculation method - choose between Advertised, Batch measured (uses the starting and final gravity on each batch of beer), or Custom-specified.

Viewing beer duty returns

You can view your current beer duty return and all of your previous returns at any time. Your current return is always up-to-date. Breww doesn’t allow any form of editing of returns, meaning you always have a full audit log of exactly what happened (e.g. if beer left to be delivered, but came back to the brewery and was re-sold, we’ll track that all of this happened rather than “forgetting” the original sale).

Paying your beer duty

We calculate everything for you, so all you need to do is fill in the figures to the HMRC website and pay the bill. We highly recommend marking the duty return as paid in Breww at this point.

Notes & manual adjustments

Occasionally there may be a need to add note or make manual adjustments to your duty return. Breww allows these to be added so you always have a permanent record of what happened, with all the information in one place - making duty inspections a delight for everyone involved! These notes and adjustments can never be removed or modified after they’ve been added (for audit purposes). If you make a mistake in a manual adjustment, just make another manual adjustment to counter the mistake. For example, if you meant to adjust the return up by £10 but mistakenly entered this as £11, you can add another adjustment for -£1. This keeps the audit-trail clean and trustworthy in case of an inspection.