Alcohol Wholesaler Registration Scheme Update

Further to our previous news that the Alcohol Wholesaler Registration Scheme (AWRS) was expected to be introduced in legislation in the Finance Bill 2015 (see our article 'Alcohol wholesaler registration scheme to be included in 2015 Finance Bill') the Government have now confirmed the introduction of this scheme with effect from 1 October 2015.

They have also issued Guidance for those affected which can be found here: 'The Alcohol Wholesaler Registration Scheme (AWRS)'.

AWRS will apply to existing, and new, wholesalers of alcohol, trading at or after the point at which excise duty has become payable. In addition at a future date, all businesses, who trade in or retail alcohol, will in future need to make sure that any UK wholesalers that they buy from are registered with HMRC.

The types of business who will be affected include:

• alcohol wholesalers
• brokers
• auctioneers
• alcohol retailers (including off-licensees and pubs).

The scheme will not apply to private individuals purchasing alcohol from retailers.

The new rules require:

• from 1 October 2015, all alcohol wholesalers must apply online to HMRC to register for AWRS
• from 1 January 2016 HMRC will start to review all AWRS applications to decide whether businesses are ‘fit and proper’ to be accepted onto the register. Where a business fails the ‘fit and proper’ test, HMRC will remove its right to trade in wholesale alcohol.
• from 1 April 2017, all businesses who trade in, or retail, alcohol will need to make sure that any UK wholesalers that they buy from are registered with HMRC.  HMRC will provide an online look up service so that trade buyers can ensure wholesalers they buy from are registered with HMRC