WSTA Logo

The Grapevine

The WSTA's views, distilled.

WSTA’s independent streak

I was delighted to be invited to be a panellist at the Harper’s March for Independents event held yesterday.

It was fascinating to hear about the range of business models and different types of diversification, including food offerings, wine clubs, buying groups and on-line retailing.  I think fellow speaker Angela Mount (MW) summed it up when she said it wasn’t enough just to be passionate about wine.

Our panel was looking at new ways for independents to change their business and increase profit.  Hal Wilson (Cambridge Wine Merchants) looked in detail at some of the ways to use in-bond purchases, duty deferment accounts and guarantee exemption schemes to delay the time when excise duty has to be paid, aiding cash flow and profit margin.

I used the opportunity to remind the participants about the obligation of excise traders to be able to demonstrate “due diligence” to HMRC in their business dealings.  Even if a retailer mangers to escape the requirement to demonstrate due diligence themselves, they can expect their wholesalers and suppliers to be required to do so and to undertake regular checks to ensure that their business relationship is on a sound footing.  Moreover, it makes good commercial sense to have robust due diligence processes.

I also spoke about the proposed Alcohol Wholesaler Registration Scheme.  We are expecting this to be introduced in the Finance Bill.  Even retailers who only have small wholesale exposure (beyond the merely “incidental”) will have to register and, when purchasing from UK wholesalers, will have to make sure that their wholesaler is validly registered.  Retailers will need to have processes to check that their wholesaler’s registrations are valid on a regular basis and this links in with the sort of checks that would be expected as part of due diligence.

In some cases, if a trader fails their wholesaler application, their other excise registrations will be at risk, so their whole business is potentially at stake. Failure to comply with the scheme could lead to civil penalties or prosecution. 

The regulatory landscape is particularly active – traders of all kinds will need to remain alert to developments.  This is an area where the WSTA’s knowledge and access to government departments is particularly helpful to members.

WSTA fighting fraud
’Drop the Duty!’: whatever the result, thank you f...

Comments

 
No comments yet