As an international law firm, we support our clients extensively in their ideas for running cross-border business ventures. We are happy to give a legal framework to their business activities. Recently, our team has taken on issues related to the establishment of a an online shop selling alcohol online in the UK Below we give you a hint of the requirements you need to meet to sell drinks of this type in the UK. And since the most common form of business in this country is the so-called 'soft drink', it is a good idea to be able to sell the drinks in the UK. LTD, we also describe the key issues involved.
Read this article to find out:
- What is a so-called LTD (limited company)?
- How to set it up and jwhat are the tax issues?
- What are the requirements for selling alcohol in the UK?
- What to look out for when selling alcohol online in the UK?
We look forward to reading!
UK limited company - it's easier than you think!
The so-called LTD (limited company) mentioned in the introduction is the British equivalent of the Polish limited liability company. It is the most frequently chosen and valued form of doing business in the UK, appreciated both locally and globally. Therefore, we will first focus on discussing the issues related to running a business in this particular form. It is worth noting that online alcohol sales in the UK can also take this shape. But one step at a time...
How to set up a limited company?
Anyone - regardless of nationality - can set up a limited company in the UK - a so-called limited company. You do not need to be resident or even domiciled in the UK. The only caveat is that the company must be registered to a UK address.
In addition, it should be established company name and appoint the Executive Director. A UK company needs at least one director, although there may be more. You should also prepare formation documents: memorandum of association and articles of association.
You can then proceed to registration at Companies House and HMRC. Indicative costs for registration are as follows:
- £12 - when entry is made online,
- £40 - for postal entry, with a waiting time of 8 -10 days,
- £100 - for an express entry within the same day.
It should be noted that the establishment of a UK company does not entitle automatically to stay and work in the UK. With today's technological possibilities, however, this is not a problem. Indeed, it is feasible to run a company - and thus earn income - by working remotely from Poland or any other country in the world.
Limited company - how high are the taxes?
The question of the amount of tax liability is one of the most pertinent issues accompanying an entrepreneur when deciding on a form of business. Among the taxes that a UK limited company must pay responsibility should be pointed out first and foremost:
- tax on legal persons (Corporation Tax),
- tax on goods and services,
- tax on salaries employees and
- tax on salaries directors managers.
Companies that can achieve in a year a turnover of £85,000 or more must be registered as VAT payers. The standard rate of VAT is 20%.
NOTE!
Corporation tax, VAT and national insurance contributions are the three largest liabilities for a company. However, it is important to note that directors of limited companies must also account for their personal tax liabilities - by filing an annual return.
Selling alcohol online in the UK - what requirements must be met?
Necessary licences
In order to legally sell alcohol online in the UK, it is necessary to obtain two licences:
- personal licence and
- premises licence.
Personal licence gives permission to manage and sell alcohol. Premises licence in turn defines a business premises as a place where the storage and dispatch of alcohol can legally take place. In order to operate an online alcohol sales business, it is necessary to obtain both licences.
On the one hand, anyone with a personal licence can legally sell alcohol on behalf of any business, including online. On the other hand, the licence holder must authorise anyone in the business without a licence to sell alcohol - online or otherwise.
How to obtain both licences?
Retrieved from personal licence is a two-stage process. Firstly, it involves having received the necessary trainingand secondly on applying for its issue on a special form.
Subsequently, a request for the premises licence (premises licence) at the local authority. It can be granted for any commercial premises where the storage and dispatch of alcohol takes place. This therefore includes warehouses or shops. Along with application form be submitted premises plan, on which the locations where the alcohol will be stored and stored will be indicated. As part of the application, you must describe how the company will meet the licensing objectives. What are these objectives? They are nothing more than the prevention of crime and disorder, the protection of minors and public safety.
How much does it cost?
Fees for issuing premises licences range from £100 to £1905. However, the application for a personal licence costs 37£.
Selling alcohol online in the UK - other requirements
Other requirements to be aware of when starting a business selling alcohol in the UK relate to appropriate product labelling. We outline the most important of these below:
- To alcohol shall be deemed spiritsof which alcohol value remains at a minimum 15%. Such products should be appropriately labelled.
- Spirits must also be marked with the appropriate fiscal label.
- In contrast, in the case of importing or manufacturing of this type of product for consumption in the UK, as a general rule, the label should state customs seal.
Bringing alcohol into the UK also involves an obligation to payment of excise duty. Imports can be made independently as a registered consignee, via another registered consignee or by using the services of authorised warehousemenwho take delivery of the alcohol and store it under suspension of excise duty in an approved excise warehouse.
It is also important not to forget rates of taxationwhich vary - depending on the specific type of alcohol. For example, whisky, vodka, gin, tequila or rum are subject to a VAT rate of 20% and excise duty of £28.74 per litre of pure alcohol. Wine, on the other hand, with an alcoholic strength of 15-18% is subject to 20% VAT and an excise duty of £3.96 per litre.
What's more - depending on where the alcohol is imported from - there may be charges for additional charges for imports from third countries.
Requirements for an online shop - pay attention to this
It's not enough just to have the right licences - you also need to make sure your business is operating in line with the regulations for selling alcohol online. A key point to look out for is an assurance that you do not sell alcohol to persons under the age of 18. To this end, you must include on your website declaration that you are over the age of 18 and ask the customer to age verification at the time of purchase. It is also required that delivery drivers ask for showing proof of identity when delivering the parcel.
Every sales platform - regardless of the type of products offered on it - must also meet the necessary requirements in terms of protection of personal data and performances shop regulations Internet.
With regard to the protection of personal data, there is a need inform the user accordingly o:
- how and for what purposes personal data will be used,
- the possibility of updating them,
- the storage period and
- the way they are secured.
The user must also be informed of his or her rights relating to obtaining, among other things, information on how his or her data are used and that he or she has the right to request the deletion of the data.
An important issue is also creation of webshop regulations selling alcohol (terms and conditions). Problems related to:
- a return policy in line with consumer protection,
- terms and time of delivery,
- subject to verification of the age of the person buying and receiving the goods and
- payment arrangements.
Alcohol sales in the UK - a summary
Entrepreneurs, if you are thinking of broadening your horizons and expanding your business beyond Poland's borders, you need to contact us. We offer our clients flexible solutions tailored to their business needs. We are happy to analyse new topics - such as those raised in the article above.
Read also this article: How to do business in England after Brexit?
