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14 Feb 2012
A CORNISH microbrewery is battling tax inspectors for survival as its tries to recoup £10,000 of backdated revenue because it allegedly wrongly sold one of its creations as a beer.
Foodswild Brewery, which is based in Helston, Cornwall, began selling Cornish Stingers, which is brewed using using Cornish nettle tips, in 2009. But after visiting the brewery's premises HM Revenue and Customs (HMRC) penalised the brewer by impounding all of its stocks of the product for examination in November 2010, Foodmanufacture.co.uk reported.
Further reading
HMRC returned the stocks in May 2011, just 10 days before their sell-by-date but is demanding that the brewery pay for an excise licence and the backdated higher rate of tax, Foodmanufacture.co.uk reported.
That represents an extra 10p a bottle sold, for what HMRC claims should have been classified as wine because it was not brewed with malt.
The taxman has given the brewery less than 40 days to respond. Foodswild owner and founder Miles Lavers said the tax dispute had stopped him from launching similar products such as dandelion beer and had forced him to temporarily freeze operations.
HMRC declined to comment, Foodmanufacture.co.uk said.
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Visitor comments Add your comment
Another colossal waste of taxpayers money!
Ye Gods, What on earth is the matter with this bunch of storm troopers (VAT Battallion).....I suggest that if we want cuts then start with this bunch of idiots and jobsworths,,,,this country is in a real mess and we need jobs..who gives a tuppenny damn if its wine or beer!!
Get a grip VAT.....we need jobs , go to the Brewery on your hands & knees and beg for forgiveness...I wish I was prime minister for a day....1st job , sack theseVAT idiots.
Posted by: redfive, 14 Feb 2012 | 12:12
Not wine, 'made wine' rate of duty
HMRC are seeking to subject the nettle beer to excise duty as 'made wine' which puts it in the same category as alcopops not wine.
For more information see my blog:
http://www.annlhumphrey.com/content/sting-ale
Posted by: Ann Humphrey, 16 Feb 2012 | 16:22
HMRC
This sounds typically heavy handed by HMRC where SMEs are concerned. Any deviation and they are down on you like, to use cricketing parlance, a flat track bully. However if you are a football club you seem to be able to transgress for a long period of time before they react.
Posted by: Simon Bottomley, 16 Feb 2012 | 17:37