Brewery licensing and compliance

Operating a brewery in the UK requires multiple licences and registrations across different regulatory bodies. This guide covers all requirements from HMRC alcohol duty obligations to local authority food safety registration and optional premises licensing for on-site sales.

Brewery Licensing Requirements Overview

Complete licensing and registration requirements for brewery operations in the UK, including APPA registration, food business registration, premises licensing, and alcohol duty obligations.

Operating a brewery in the UK requires several licences and registrations. The requirements depend on your production activities and whether you sell alcohol directly to the public. All breweries producing beer over 1.2% ABV must obtain Alcoholic Products Producer Approval (APPA) and register as a food business.

APPA registration deadline: 45 working days before production starts
Food business registration deadline: 28 days before trading begins
Premises licence requirement: Required if selling alcohol on-site to public
Alcohol duty payment frequency: Monthly (by 25th of each month)
Duty return submission: Monthly via online service (from 1 March 2025)
APPA system effective date: 1 February 2025
Online duty service launch: 1 March 2025

Additional compliance requirements

Alcohol Wholesaler Registration Scheme (AWRS): Required if selling duty-paid alcohol to other businesses
HACCP food safety system: Mandatory for all food and drink producers
Production record keeping: Maintain detailed records of all production, sales, and stock movements
Labelling requirements: ABV declaration, allergen information, and CMO drinking guidelines
VAT registration: If turnover exceeds £90,000 threshold

Contract brewing vs licence production

Contract brewing (you do not need APPA): If you hire another brewery to produce your beer under contract manufacturing, where you retain brand ownership and they provide manufacturing services only, you do not need APPA. The contract brewer's approval covers production.

Licence production (licence holder needs APPA): If you produce beer under licence from another brand owner (where you pay royalties and packaging states 'produced under licence'), then you as the producer need APPA. The licence holder must also have APPA if producing their own products.

Apply for APPA

Apply for a premises licence

1. APPA Registration (HMRC)

All breweries producing beer over 1.2% ABV must obtain Alcoholic Products Producer Approval from HMRC. This is your primary regulatory approval for alcohol production and duty obligations.

APPA Registration for Breweries

How to apply for Alcoholic Products Producer Approval (APPA) for brewery operations, effective from 1 February 2025.

From 1 February 2025, all breweries producing beer over 1.2% ABV must have an Alcoholic Products Producer Approval (APPA). This single approval replaces the previous separate registration system. Existing producers have been automatically migrated to the new system.

Application deadline: 45 working days before production starts
APPA ID format: 15-digit unique identifier
System effective date: 1 February 2025
Online service launch: 1 March 2025 (returns and payments)
Application method: Online via GOV.UK

Important notes

Separate requirement: Must also register as a food business with your local authority at least 28 days before trading. This is separate from APPA and is required for all food and drink producers.

Contract brewing: If you hire another brewery to produce your beer under contract (where you retain brand ownership and they provide manufacturing services only), you do not need APPA. However, if you produce beer under licence from another brand owner (where you pay royalties and packaging states 'produced under licence'), the licence holder needs APPA.

Apply for APPA

2. Food Business Registration

Beer is classified as a food product, so all breweries must register as a food business with their local authority's Environmental Health department at least 28 days before trading. This is separate from APPA and is free.

3. Premises Licence (if selling on-site)

If you plan to sell alcohol directly to customers at your brewery (such as in a taproom, bar, or shop), you must obtain a premises licence from your local licensing authority. This is only required if you're selling to the public on-site; wholesale or distribution sales do not require a premises licence.

Apply for Alcohol Premises Licence (England & Wales)

10-step application process for obtaining a premises licence to sell or supply alcohol, including 28-day consultation period and operating schedule requirements.

To sell or supply alcohol from your premises in England and Wales, you must obtain a premises licence from your local licensing authority (usually your local council). The application process takes at least 28 days due to the statutory consultation period.

Will also need a Designated Premises Supervisor (DPS) who holds a personal licence to supervise alcohol sales.

Minimum processing time: 28 days (consultation period)
Application validity: Permanent until revoked or varied
DPS requirement: Must hold valid personal licence
Minimum age to apply: 18 years
Public notice duration: 28 consecutive days at premises
Newspaper advertisement deadline: Within 10 working days of submission
Plan scale requirement: 1:100 (under 100m²) or 1:200 (larger premises)

The four licensing objectives

Your operating schedule must address how will promote each of the four licensing objectives:

Prevention of crime and disorder – measures to prevent illegal activities on the premises
Public safety – ensuring the safety of staff and customers
Prevention of public nuisance – minimising noise, litter, and disturbance to neighbours
Protection of children from harm – policies to prevent underage sales and protect minors

Apply for a premises licence on GOV.UK

4. Beer Duty Rates and Obligations

Beer duty is charged per litre of pure alcohol based on ABV. Rates vary depending on whether your beer qualifies for Draught Relief and whether you're eligible for Small Producer Relief.

Beer Duty Rates 2025/26

Current beer duty rates by ABV band, effective 1 February 2025. Includes standard and draught relief rates.

Beer duty is charged per litre of pure alcohol based on the product's ABV (alcohol by volume). Rates increased on 1 February 2025 with enhanced Draught Relief to support the pub trade.

0 to 1.2% ABV: £0.00 per litre pure alcohol (no duty)
1.3% to 3.4% ABV (standard): £9.61 per litre pure alcohol
1.3% to less than 3.5% ABV (draught): £8.28 per litre pure alcohol
3.5% to 8.4% ABV (standard): £21.78 per litre pure alcohol
3.5% to less than 8.5% ABV (draught): £18.76 per litre pure alcohol
8.5% to 22% ABV (standard only): £29.54 per litre pure alcohol
Above 22% ABV (standard only): £32.79 per litre pure alcohol
Draught Relief discount: 13.9% (increased from 9.2% on 1 Feb 2025)
Effective date: 1 February 2025

What qualifies for Draught Relief

Draught Relief applies to beer that meets all these criteria:

Below 8.5% ABV
Sold in venues such as pubs
Capable of connection to a pump system or drinks tap
Contained in containers of 20 litres or higher capacity

Products above 8.5% ABV are not eligible for Draught Relief and pay standard rates only.

5. Small Producer Relief

Small breweries producing less than 4,500 hectolitres of pure alcohol per year may qualify for Small Producer Relief, which provides significant duty reductions on a tapered basis.

Small Producer Relief Eligibility

Eligibility criteria and thresholds for Small Producer Relief on alcohol duty (2025/26).

Small Producer Relief (SPR) allows eligible breweries, cider makers, winemakers, and spirits producers to pay reduced alcohol duty. Relief is tapered based on annual production volume.

Annual production limit: 4,500 hectolitres pure alcohol
Product ABV eligibility: Less than 8.5% ABV
Production year: 1 February 2025 to 31 January 2026
Maximum SPR discount: 91.5% (on first 5 hectolitres for beer producers)
Licence production limit: Less than 50% under licence
Northern Ireland - Beer: 200,000 hectolitres finished product
Northern Ireland - Wine: 1,000 hectolitres finished product
Northern Ireland - Cider/Perry: 15,000 hectolitres finished product
Northern Ireland - Spirits: 10 hectolitres pure alcohol

Key Distinction: Under Licence vs Under Contract

Products made UNDER LICENCE (counts towards 50% limit):

Licence terms restrict making/selling
Packaging states "produced under licence"
You pay brand owner royalties
Name/IP rights belong to another producer

Products made UNDER CONTRACT (does NOT count):

You hire another producer as service provider
Producer uninvolved in marketing
You retain full brand ownership
Contract manufacturing only

Check Small Producer Relief eligibility

6. Monthly Duty Payments

Breweries must submit monthly alcohol duty returns and make payments to HMRC on a strict schedule. From 1 March 2025, all returns and payments are made through the Manage your Alcohol Duty online service.

Brewery Alcohol Duty Payment Deadlines

Monthly payment schedule for alcohol duty, including adjustment periods and weekend rules.

Duty payment deadline: 25th of each month
Weekend/bank holiday rule: Pay by previous working day if 25th falls on weekend or bank holiday
Return submission deadline: 15th of following month (for adjustments)
Reporting period: Calendar month
Online service launch: 1 March 2025
Return form (legacy): EX46 (replaced by online system from March 2025)

Payment timeline

Funds must clear HMRC's account by the 25th of the month. If the 25th falls on a weekend or bank holiday, payment must clear by the previous working day to avoid penalties.

Returns can be adjusted until the 15th of the following month. After this date, or once the return is marked as paid, no further adjustments are permitted.

7. Production Record Keeping

Comprehensive production and duty records must be maintained for at least 6 years to demonstrate HMRC compliance, support SPR claims, and manage duty-suspended stock movements.

Brewery Record Keeping Requirements

Production records, duty calculations, and retention requirements for breweries to maintain HMRC compliance.

Breweries must maintain comprehensive production records to demonstrate compliance with HMRC alcohol duty obligations. These records are essential for claiming Small Producer Relief, managing duty-suspended stock movements, and supporting audit requirements.

Record retention period: 6 years minimum
APPA ID requirement: Must appear on all duty records
Production records required: Date, product name, volume (hectolitres), ABV, batch numbers
Duty liability records: Duty rate applied, SPR calculations, amount calculated, payment reference
Stock movement tracking: Duty-suspended transfers and duty-point records
Supplier/customer records: Names, addresses, product types, quantities, dates
Spoilage documentation: Evidence for duty relief claims
Inspection availability: Records must be available for HMRC audit

Critical record keeping rules

APPA ID on records: Your 15-digit APPA ID must appear on all alcohol duty records and returns from February 2025
ABV measurement: Record ABV within HMRC acceptable tolerances using appropriate measurement equipment
SPR eligibility: Accurate annual production records (measured in hectolitres of pure alcohol) are essential to determine and claim Small Producer Relief
Duty-suspended movements: Track beer transferred between approved premises before the duty point to avoid premature duty liability
6-year retention: Records must be kept for a minimum of 6 years to satisfy HMRC audit requirements and potential retrospective investigations

Brewing beer: rules and regulations

8. Beer Labelling Requirements

All beer sold in the UK must display mandatory information on labels to comply with food information regulations.

Beer Labelling Requirements

Mandatory label information for beer products including ABV declaration, net quantity, allergens, and producer details.

Beer labels must display specific mandatory information under UK food labelling regulations. The requirements apply to both bottled and canned beer sold to consumers.

Name of product: Legal or customary name required
Alcohol by volume (ABV): Must be stated as percentage by volume (% vol)
Net quantity: Volume in millilitres (ml) or litres (l)
Producer/bottler details: Name and address (UK address for UK market)
Country of origin: Required if omission would mislead consumers
Allergen declaration: Allergens must be emphasised in ingredients list
Best before date: Required if shelf life under 18 months
Energy declaration: Kilocalories (kcal) required for products over 1.2% ABV

Beer-specific labelling rules

Under The Beer Regulations 1993 and Food Information Regulations 2014:

Cannot use term "IPA" (India Pale Ale) for non-pale ales
Ingredient list required if any ingredient is highlighted in marketing
Gluten-containing cereals (barley, wheat) must be declared as allergens
Sulphites must be declared if added or present above 10mg/kg

Recycling and packaging requirements

Extended Producer Responsibility (EPR) obligations apply from 2024 for packaging. On-pack recycling labels (OPRL) are recommended to help consumers recycle correctly.

9. Environmental Permits

Larger breweries may need environmental permits depending on production volumes and effluent discharge.

Environmental Permits for Breweries

Environmental permits required for brewery operations including trade effluent consent and water abstraction licensing.

Breweries require environmental permits for discharging waste water and abstracting water for production. Requirements vary based on production volume and water source.

Trade effluent consent requirement: Required for discharge of brewery waste to public sewer
Trade effluent regulator: Local water company (e.g. Thames Water, United Utilities)
Trade effluent fee: Varies by water company
Ongoing trade effluent charges: Annual charges based on volume and strength of effluent
Water abstraction threshold: Licence required if abstracting over 20 cubic metres per day
Water abstraction regulator (England): Environment Agency
Water abstraction regulator (Scotland): SEPA
Water abstraction regulator (Wales): Natural Resources Wales
Waste carrier registration: Required for transporting own waste
Spent grain disposal: Often given to farmers (agricultural use exemption applies)

Implementation Timeline

Plan your brewery launch timeline carefully to meet all registration deadlines:

T-45 working days: Apply for APPA (must be approved before production)
T-28 days: Register as food business with local authority
T-28 days (if applicable): Submit premises licence application (if selling on-site)
Before production: Implement HACCP food safety system (SFBB or MyHACCP)
Day 1 trading: Begin production only after receiving APPA approval
Monthly (by 25th): Submit duty returns and make payments to HMRC

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Brewery licensing and compliance

1. APPA Registration (HMRC)

2. Food Business Registration

3. Premises Licence (if selling on-site)

4. Beer Duty Rates and Obligations

5. Small Producer Relief

6. Monthly Duty Payments

7. Production Record Keeping

8. Beer Labelling Requirements

9. Environmental Permits

Implementation Timeline

Compliance Assistant

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1. APPA Registration (HMRC)

2. Food Business Registration

3. Premises Licence (if selling on-site)

4. Beer Duty Rates and Obligations

5. Small Producer Relief

6. Monthly Duty Payments

7. Production Record Keeping

8. Beer Labelling Requirements

9. Environmental Permits

Implementation Timeline

Related guides in Excise Duty

Business Context Testing

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