Starting an alcoholic drinks manufacturing business requires navigating a unique tri-regulatory structure. You'll need approvals from HMRC (excise duty and alcohol production), your local authority (food safety), and your licensing authority (if selling on-site). This journey walks you through all requirements in the right order.
Most breweries and distilleries operate as limited companies for liability protection and investment purposes. Decide on your structure before starting any registrations.
You need three approvals before production: APPA from HMRC (45+ working days), food business registration (28 days), and premises licence if selling on-site (2-3 months). Start APPA application first - it's the longest lead time.
Applies to: All businesses manufacturing alcohol over 1.2% ABV
Official guidance (opens in a new tab)
Our comprehensive guide covers all three regulatory approvals in detail: APPA registration, food business registration, premises licensing, duty rates, and Small Producer Relief.
Step 1: Register with HMRC for alcohol production
Your first step is obtaining Alcoholic Products Producer Approval (APPA) from HMRC. This approval is mandatory before producing any alcohol over 1.2% ABV. The process takes at least 45 working days, so start early.
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 (opens in a new tab)
Start your APPA application at least 3 months before you plan to begin production. HMRC will arrange a premises inspection and review your procedures before approval.
Producers making no more than 4,500 hectolitres of pure alcohol a year qualify for Small Producer Relief on products below 8.5% ABV - the difference between viable and unviable for small breweries. The discount is tapered continuously: the smallest producers get up to 91.5% off the duty on the first 5 hectolitres of pure alcohol (beer), with relief reducing as annual production approaches 4,500 hectolitres. Claim SPR when applying for APPA.
Official guidance (opens in a new tab)
Understanding alcohol duty rates
Once you have APPA approval, you'll pay excise duty monthly based on the alcohol you produce. Rates vary by product type and ABV, with significant reliefs available for small producers.
Beer duty is charged per litre of pure alcohol based on the product's ABV (alcohol by volume). Rates increased by 3.66% (RPI) on 1 February 2026.
Up to 1.2% ABV
£0.00 per litre pure alcohol (no duty)
At least 1.2% to less than 3.5% ABV (standard)
£9.96 per litre pure alcohol
At least 1.2% to less than 3.5% ABV (draught)
£8.58 per litre pure alcohol
3.5% to less than 8.5% ABV (standard)
£22.58 per litre pure alcohol
3.5% to less than 8.5% ABV (draught)
£19.45 per litre pure alcohol
8.5% to 22% ABV (standard only)
£30.62 per litre pure alcohol
Above 22% ABV (standard only)
£33.99 per litre pure alcohol
Draught Relief discount
13.9% (unchanged from 1 Feb 2025)
Effective date
1 February 2026
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.
Use HMRC's guidance to calculate whether your production volume qualifies for duty relief and estimate your potential savings.
Step 2: Register as a food business
All alcoholic drinks manufacturers must register with their local authority as a food business at least 28 days before starting production. Beer, cider, wine, and spirits are classified as food products under food safety law.
All food businesses in the UK must register with their local authority's environmental health department at least 28 days before starting to trade. Registration is free and is a legal requirement under food safety law. This applies whether you operate from commercial premises, home, a market stall, or as a mobile caterer.
Registration cost
FREE
Registration deadline
At least 28 days before trading
Registration validity
Permanent (notify of changes)
Processing time
Immediate confirmation, inspection scheduled later
Home-based businesses
Must register (same as commercial premises)
Mobile food businesses
Register once, with the local authority where the vehicle or equipment is normally kept
Food hygiene rating
Issued after first inspection (rating of 0 to 5)
Who needs to register Commercial premises: Restaurants, cafés, pubs, hotels, takeaways, shops, bakeries, manufacturersHome-based: Home baking businesses, childminders providing food, food sold online from homeMobile: Food trucks, market stalls, mobile caterers, ice cream vansTemporary: Pop-ups, event catering, farmers markets (register even for occasional trading)Separate from premises licence Food business registration is separate from premises licences for alcohol. Restaurants serving alcohol require both free food registration with environmental health AND a premises licence (£100-£1,905) from the licensing authority. Both are usually departments within the same local council.
Register a food business (England and Wales) (opens in a new tab)
Register a food business (Scotland) (opens in a new tab)
Register at least 28 days before production. Registration is free and cannot be refused, but your premises will be inspected and rated.
HACCP food safety systems for breweries
Like all food businesses, breweries and distilleries must implement HACCP-based food safety procedures. Use the Food Standards Agency's 'Safer Food, Better Business' pack or develop a bespoke HACCP system.
Safer Food Better Business (SFBB) is a simplified HACCP system designed for small food businesses with simple operations in England and Wales. It provides a practical way to meet your legal food safety management requirements under Regulation (EC) 852/2004.
SFBB 5 core topics
Cross-contamination, Cleaning, Chilling, Cooking, Management
Daily diary requirement
Record opening/closing checks every day
Review frequency
Conduct 4-weekly reviews of procedures
Record retention
Keep until next local authority visit
Available packs
Caterers, Retailers, Childminders, Care homes, Specialist cuisines
Download SFBB packs (opens in a new tab)
Free HACCP system designed for small food businesses. Choose the manufacturing pack for breweries and distilleries.
All production staff need Level 2 Food Hygiene certification. Supervisors responsible for HACCP systems need Level 3 qualification. Training is mandatory and must be documented.
Most beer contains gluten from barley/wheat - a major allergen requiring emphasis on labels. For taprooms, provide written allergen info or signage stating 'Ask staff for allergen information'.
Applies to: All breweries producing beer from barley, wheat, or rye
Official guidance (opens in a new tab)
Implement comprehensive allergen management systems, including labelling, cross-contamination prevention, and staff training. Essential for all food and drink manufacturers.
Step 3: Apply for premises licence (if selling on-site)
If you plan to sell alcohol directly to customers at your brewery or distillery - through a taproom, shop, bar, or tasting room - you need a premises licence from your local licensing authority. Wholesale and distribution sales don't require this licence.
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, unless the licensing authority agrees a different scale in writing
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 premisesPublic safety – ensuring the safety of staff and customersPrevention of public nuisance – minimising noise, litter, and disturbance to neighboursProtection of children from harm – policies to prevent underage sales and protect minorsApply for a premises licence on GOV.UK (opens in a new tab)
Contact your local council's licensing department to apply for a premises licence. You'll need to advertise your application and address the four licensing objectives.
Your Designated Premises Supervisor (DPS) needs a personal licence. This requires completing an accredited qualification (Level 2 award) and applying to the licensing authority.
Brewery and distillery premises must meet food hygiene standards, provide adequate space for equipment and storage, and comply with planning use classes. Consider environmental factors like drainage, noise, and odour.
Breweries must obtain trade effluent consent from their water company before discharging to sewers (£1,000-£5,000/year). Contact your water company before installing equipment - operating without consent is a criminal offence.
Applies to: All breweries discharging wastewater to sewers
Official guidance (opens in a new tab)
Contact your water company to apply for trade effluent consent. Do this before installing brewing equipment so you understand discharge limits and costs.
Breweries and distilleries need product liability insurance (essential for alcohol products), employer's liability if you have staff, public liability for taproom visitors, and business interruption cover.
Register for Self Assessment (sole trader) or Corporation Tax (limited company). You'll also need to register for VAT - alcohol is standard-rated at 20%, but VAT threshold is £90,000 turnover.
Submit your monthly duty return by the 15th and pay by the 25th of the month following each accounting period. Late payment attracts penalties under HMRC's harmonised late-payment regime (a first penalty applies once payment is 15 days overdue, with further penalties the longer it remains unpaid). Keep production records for 6 years - HMRC can inspect without notice.
Applies to: All APPA-approved alcohol producers
Official guidance (opens in a new tab)
Monthly duty payment deadlines
Alcohol duty must be paid monthly by the 25th of the month following production, with the return submitted by the 15th. Payments are made through HMRC's Manage your Alcohol Duty online service. Plan cashflow carefully - duty is a significant cost for small producers.
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.
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 the following month
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.
Register for HMRC's Manage your Alcohol Duty service and submit monthly returns by the 15th of each month, paying by the 25th. Late returns and payments trigger automatic penalties.
Breweries and distilleries have specific H&S risks: manual handling (grain bags, kegs), confined spaces (fermentation vessels), hot liquids and steam, CO2 hazards, chemical safety (cleaning products), and machinery risks.
If employing people, register as an employer with HMRC, set up PAYE, and provide workplace pensions. All brewery staff handling food need Level 2 Food Hygiene training.
Planning your launch
Critical path: APPA approval is the longest lead time (45+ working days). Start this application first. Do not sign leases or hire staff until you have APPA approval. See our complete licensing guide for detailed implementation timelines.
Our comprehensive guide provides full details on APPA registration, duty rates, Small Producer Relief calculations, monthly returns, premises licensing, and record-keeping requirements.