Thursday, April 12, 2018
HM Revenue and Customs has released guidance on compliance obligations for those firms liable to pay the UK's new Soft Drinks Industry Levy, introduced on April 6, and for warehouses that store taxable beverages.
The tax is levied at:
According to the guidance, there are different rules about when a taxpayer must register for the levy, depending on how and when they handle liable drinks.
A taxpayer must register within 30 days of:
Those caught by more than one of these rules must register at the earliest date. Registration is required only once. There are penalties for non-compliance.
To register for the Soft Drinks Industry Levy, the taxpayer must have a Government Gateway account or create one.
Under the Soft Drinks Industry Levy regime, a premises owned or run by the taxpayer or someone else to store liable goods should be nominated as a "registered warehouse." When the taxpayer move drinks liable for the Soft Drinks Industry Levy into a registered warehouse, the drinks won't have to be reported until they are either:
Those nominating the premises of a customer as a registered warehouse and moving liable drinks to it will be considered to be making them available to the customer, HMRC explained. This means the drinks will need to be reported for the levy at that point. The point at which a taxpayer needs to report drinks will be delayed only if they're moved to a premises after it's been nominated as a registered warehouse.
A taxpayer must get and keep records of the addresses of all premises where liable drinks were stored for each reporting period, and which premises were registered warehouses.
For each delivery of liable drinks to all premises including registered warehouses, the taxpayer must get and keep records that show:
Taxpayers must keep these records for six years, starting from the last day of the Soft Drinks Industry Levy reporting period that the records are for.
Taxpayers will be able to nominate a registered warehouse from May 2018.