Health and Community
As announced in the Autumn Budget, the uprating of duty on wine and some high strength cider took effect as of 1 February 2019.
With the rise reflecting inflation at 3.4%, this will add 7p to a bottle of wine, 9p to sparkling wine and 9p to a bottle of fortified wine (this is before VAT is added).
There are also changes to the classification of cider and perry too.
The objective of these changes by the government are twofold:
- To help pubs by freezing rates on beer, some spirits, cider and perry in order to encourage responsible alcohol consumption, and
- Encourage uptake of lower strength ciders.
The idea being this could help alleviate health and social issues caused by the association of white ciders and problem drinking.
Cider and Perry Bands
Changing classification bands, there are now three band rates for cider and perry (which includes a mid-strength band). These are:
- Above 1.2% but less than 6.9% ABV
- From 6.9% up to 7.5% ABV
- Above 7.5% but less than 8.5% ABV
How is this likely to affect you?
Requiring a change in both band and pricing for you and your customer, you will need to ensure your system reflects the new reality at the right time.
Bevica and Microsoft Dynamics
With 15 years’ experience in the drinks industry and with CfMD (Certified for Microsoft Dynamics) accreditation, Bevica is our industry specific business management solution – that is tried, tested, proven and recommended above all other business solutions.
Based on Microsoft Dynamics Business Central, Bevica manages accounting and finances, supply chain, operations, stock control, CRM and BI reporting. It also links to Microsoft products: Office 365, Power BI and PowerApps.
Integrating with e-commerce, retail and warehousing too, the change in duty and classification with Bevica is a quick and easy process.
With a few simple clicks, duty changes can be setup in Bevica and existing ones updated. Being date driven they take affect automatically, recording the correct cost and accruing into your duty account.
Sales prices are equally easy to update. If you are maintaining duty free sales prices, there is nothing to do, the system calculates duty paid sales prices as and when needed.
If you are maintaining duty paid prices, inbuilt routines let you manipulate them in bulk.
Taking the stress out of implementing the policy change, if you’d like to know more about Bevica, please get in touch via the contact form or call us directly on 01483 751888.