The alcohol production approvals platform, which was set to go live on 1 February, was meant to allow new and existing applications for Customs and Excise approvals to be conducted online.
Instead, an online application for new customers seeking production approval will be introduced, while producers that already hold approval will have to use existing routes to inform HMRC of any changes.
Meanwhile, the published reforms to alcohol approvals still took effect from 1 February as planned.
As part of this process, HMRC has migrated the approval details it holds for each alcohol producer into the new Alcoholic Products Producer Approval (APPA).
Producers will receive their APPA ID in a letter before 25 February 2025, with guidance on how to enrol for the new returns and payment service which will take effect from 1 March.
However, the online service that would have enabled existing customers to view and amend their approvals will not be available.
‘Step in the wrong direction’
“Understandably, this decision has caused some consternation in the industry as the platform was a welcome improvement bringing excise approval management up to date from what was a very manual old-fashioned approach,” commented Matthew Clark, a customs, excise and international trade partner at accountancy and business advisory firm BDO.
“Many operators have invested significant time and resources in preparing for the transition only to find that it’s been axed at the stroke of a pen.”
Clark added that continuing with a manual system was a step in the wrong direction.
“It appears many of the ambitious anticipated changes within the Modernisation of Authorisations HMRC project now won’t go ahead including the Single Trade Window, which many viewed as making the interactions with HMRC quicker and easier, as well as reducing HMRC’s own time and efforts,” he said.
“On the upside, the introduction of two tax reliefs from 1 Feb – draught relief and small producer relief – worth some £85m will be a benefit to the industry. But one is still left with the impression of giving with one hand and taking away with the other.”
