Using the digital service will make it simpler, quicker and easier for producers of alcoholic products to manage all their Alcohol Duty processes across all types of alcoholic products subject to the duty. 

This will deliver on HMRC’s commitment to offer greater digital options to customers, giving them the digital experience they expect from a modern tax and customs authority. 

Alcohol Duty: HMRC's New Digital Service

What compounders and rectifiers need to know 

Important: When the new digital service launches in March 2025, compounders and rectifiers will no longer need to use an excise warehouse. Instead, they must be approved as Alcoholic Product Producers (APPA) and submit monthly duty returns and payments. 

HMRC will migrate existing compounder or rectifier licenses to the new Alcohol Products Producer Approval and issue an identification number (the 'APPA ID'). 

What cider makers need to know 

Cider makers of all sizes—including the smaller ones—will need to get approval to produce cider in the new digital service, which is due to launch in March 2025. 

The smallest cider makers, who produce less than five hectolitres of alcohol in a 12-month period, will not need to submit a return on the new digital service. However, if and when they exceed this threshold, they must submit a monthly duty return. 

HMRC will issue a new APPA ID to currently exempt cider makers and issue them an identification number so that they can use the digital service. 

HMRC will share further details on the new digital service, including how to access it, closer to its launch date. 

In the meantime, customers should remember that they need to accurately account for Alcohol Duty using the current processes.