New Rules for Late Payment on Alcohol Duty Set to Take Effect in September 2025

In a move aimed at tightening fiscal measures, the UK Treasury has announced a new regulation concerning alcohol duty. Starting September 1, 2025, any delays in paying alcohol duty to His Majesty's Revenue and Customs (HMRC) will incur late payment interest. This change comes under the Finance Act 2009, specifically section 101, which has now been extended to cover alcohol duty.

What This Means:

If you owe alcohol duty to HMRC and pay late, you will be charged interest on the overdue amount. This is part of the government's broader strategy to ensure timely tax payments across various sectors. Section 101, which has been active for other taxes, will now include alcohol duty, aligning it with existing late payment interest rules.

Understanding the Interest Rates:

The specific interest rates applicable to late payments are outlined in the Taxes and Duties (Interest Rate) Regulations 2011. This ensures a standardized approach to calculating interest across different types of tax duties.

Background:

This adjustment is part of previously announced policies by the Treasury and does not introduce new legislation but rather activates an existing one for alcohol duties. The aim is to enhance compliance and ensure that businesses dealing in alcohol meet their tax obligations on time.

For those involved in the alcohol industry, it's crucial to note this upcoming change and ensure that all payments to HMRC are made promptly to avoid additional costs. As always, staying informed and prepared is key to managing your financial responsibilities effectively.