UK HMRC has announced a change to its planned Modernising Authorisations project, impacting the alcohol production sector. 

The initiative, which was set to introduce an online platform for both new and existing Customs and Excise approvals, has been halted following a government spending audit.  

This development affects the anticipated go-live date of the online service for alcohol production approvals, previously scheduled for 1 February 2025. 

HMRC will launch an online application for new customers seeking production approval, while existing approved producers can use current methods to notify HMRC of any changes. 

The reforms to alcohol approvals have proceeded as scheduled from 1 February 2025.  

The agency will transition the approval details it currently holds for each alcohol producer into the new Alcoholic Products Producer Approval (APPA) system.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Producers are expected to receive their APPA ID via post before 25 February 2025, along with instructions on how to enrol for the forthcoming returns and payment service, which will be operational from 1 March 2025. 

However, the online service that would have facilitated existing customers in viewing and amending their Alcohol Products Production Approvals will no longer be made available.  

Instead, HMRC will launch an online application process on 4 February for new customers seeking production approval.  

The new returns and payment service is still on track to be introduced on 1 March 2025.  

Producers will need to register to access the service, and HMRC will provide detailed enrolment guidance to all producers. 

BDO customs, excise and international trade partner Matthew Clark said: “It appears many of the ambitious anticipated changes within the Modernisation of Authorisation HMRC Project now won’t go ahead, including the Single Trade Window, which many viewed as making the interactions with HMRC quicker and easier, as well as reducing HMRC’s own time and efforts. Keeping it manual feels like a step in the wrong direction. 

“On the upside, the introduction of two tax reliefs from 1 Feb – draught relief and small producer relief – worth some £85m ($105.4m) will be a benefit to the industry. But one is still left with the impression of giving with one hand and taking away with the other.” 

This adjustment comes in the wake of a report by Pinsent Masons, which highlighted a 43% reduction in the number of UK businesses being monitored by HMRC for insufficient presence in territories deemed ‘tax havens’.