2014 Alcohol Duties

2014 Alcohol duties

We pay duty when the goods arrive so the prices will only change as we restock the warehouse.

Usually there is a PR assault underling the damaging effects of alcohol before the budget, there wasn’t this year because the news is good.  Some may have noticed that wine and sparkling wine was not mentioned.

We don’t sell many spirits, so the chancellors freeze makes little difference.  The annual theme politicians use to explain their  nationalistic help to the whisky industry and that is that 90% of whisky is exported, it is in the nations interest to keep duties low.  Two things that need clarifying, the alcohol duty on whisky is far from low and export markets do not pay duty.

Duty on a litre of whisky bottled at 40% is £11.28 (before vat)
Most spirits are sold in 70cl bottles, at 40% this works out as £7.90 (before VAT)
For comparison the alcohol tax for spirits is 28.22ltr (100% alcohol)

I am going to group wine and sparkling wines as I see them as similar products, same ingredients etc.  The chancellor does not see them as being similar and the growth of prosecco must be a serious boom for the treasury.  Wine has gone up by 4.8p a bottle, sparkling wine by 6.8p, duties for low alcohol wines have gone up too which sees a welcome departure from the idea that alcohol is solely a health hazard, it is a political tool.

Duty on a litre of wine bottled between 5.5% and 15% is £2.73 (before vat)
Most wines are sold in 75cl bottles, this works out as £2.05 (before VAT)
For comparison the alcohol tax for wine bottled at 12.5% is £22.00ltr (100% alcohol)

Duty on a litre of sparkling wine bottled between 8.5% and 15% is £3.50 (before vat)
Most sparkling wines are sold in 75cl bottles, this works out as £2.73 (before VAT)
For comparison the alcohol tax for wine bottled at 12.5% is £28.00ltr (100% alcohol)

Please note, there is VAT to add to all of these numbers.

The point of this blog? I needed to work out the implications of the budget so I thought I would share the rambllngs.  Please, do tell me if I have made any mistakes.  I would love to see a single alcohol tax though rather than this childish, political muddling.

ps beer is £18.74ltr (100% alcohol), it is a product that is sensibly billed by the alcohol in the beer –  there are different rate for the unpalatable sub 2.8% category and for microbreweries.

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