HMT launches SBR questionnaire to UK brewers
As part of the Treasury review into Small Breweries Relief, the Government has issued a questionnaire which will help them understand how SBR is working, and what reform might be required.
Brewers can fill in this questionnaire by clicking here: https://www.surveymonkey.com/r/sbreview
This questionnaire will run for 6 weeks, with a deadline of 17 March.
Why it’s so important to participate
SBR is a great success story. HM treasury want to hear from you how well SBR is working and how it could be improved. All options are on the table.
SIBA’s position is clear:
- No brewer should lose any duty relief as a result of this review.
- SIBA will continue to defend SBR at the maximum legally permitted level of 50% duty relief for all brewers below 5,000hl. There is no political, economic or rational case for removing any relief from any small brewer.
- SIBA wants to see positive reform of the curve above 5,000hl, making it easier to grow a business by removing the ‘cliff edge’ as relief is rapidly withdrawn.
- Small Breweries’ Relief at current levels is essential to the future – 83% of SIBA members say it is ‘extremely important’ to their business, 5% ‘very important’ and a further 8% consider it ‘important’.
- All brewers are urged to give Treasury this evidence, bearing in mind that some are very keen to secure reform which would harm smaller businesses.
For more information about SIBA’s SBR policy, click here.
Before you answer
To complete this questionnaire you will need a few pieces of financial and production information to hand:
- Your total output in hectolitres in 2018
- Your total amount of beer produced under license (in HL) in 2018
- Your total amount of beer exported (in HL) in 2018
- Your total cost of beer production, distribution and sales (excluding tax, VAT and duty but including beer overheads) in the last full financial year. This question is easy to answer if your business only produces and sells beer. If so, we suggest that the easiest way of calculating this figure is as follows: First obtain a copy of your last full year’s Financial Accounts. From the total Sales figure, deduct the Net Profit before tax figure and then deduct the Beer Duty cost figure shown in your Accounts. The resultant figure will be your total cost of production, distribution and sales. If, however, your business also sells other things (such as food or merchandise) you’ll have to remove the cost of those things sold from the figure you first calculated. You should then enter the resultant figure when asked in the survey. If staff working in the business are paid partly by way of dividend or, if your brewery is not a limited company and proper remuneration for staff working in the business is not shown in the accounts then please add the appropriate figures to the above to show a realistic total cost for your business.
- Your total revenue from beer sales (excluding tax, VAT and duty but including beer that was exported) in the last full financial year. This question is easy to answer if your only sales are of beer. If so, we suggest that the easiest way of calculating this figure is to take the total sales figure as shown in your financial Accounts and from this figure deduct the Beer Duty cost figure. If, as above, you sell other things, you’ll also need to deduct the value of those sales from the first figure you calculated. You should then enter the resultant figure when asked in the survey.
Once these pieces of information have been filled in, the questionnaire will ask for your opinions on SBR.
If you require help, or have any queries then please contact either Mike Benner, James Calder or Ian Fozard. https://www.siba.co.uk/contacts/
This Questionnaire will run for a period of 6 weeks.
We recommend that you spend some time considering the questionnaire and collecting the above information to make your submission as accurate as possible and submit at a later date.
SIBA will be issuing further reminders, guidance and help to brewers in due course and in plenty of time before the questionnaire deadline.
When you have filled in the questionnaire, please email James Calder to let him know – and that small brewers can rely on your support.