Kreston Reeves LLP announced as Sponsor 2022
We are absolutely thrilled to announce that Kreston Reeves are continuing their much appreciated support of Viti-Culture for 2022.
The Kreston Reeves rural team work alongside a number of vineyards offering advice to those interested in developing a viticulture business, as well as established wine producers looking to expand and export into overseas markets.
Here are just some of our advisory services for the viticulture sector and how they can help:
Cashflow and finance
Cashflow management is key for any business and with viticulture it can be vital to the survival of your business for not only new start-ups but also some well-established vineyards. The nature of production, the market, and the product itself can throw up a variety of obstacles from initial set-up costs, the time it takes to get to market and of course the unpredictability of the UK weather.
Although these obstacles are both foreseeable and unforeseeable there are ways in which you can financially plan for them in order to mitigate risk and as a firm Kreston Reeves is here to guide and support you through all aspects, including:-
Setting up the right business structure
Choosing the right funding structure
Utilising tax reliefs that are available such as capital allowances and R&D tax credits
Utilising cloud technology for your finance function for accurate up-to-date reporting
Budgets and cash flow forecasts
Added value and marketing
Once a vineyard is set up then producing wine is just one way of bringing an income stream in. Opening a shop to sell direct to the local community and visitors is the next step but there are then plenty of other things that can be done which will improve “margin growth” by enabling visitors to spend more each time they visit. Anything which then becomes a long-term stream of income benefits the vineyard, rather than just relying on one off transactions which can be erratic. Examples might include a wine club, leasing vines, or tourism activities such as glamping!
The other side to be addressed is then how to get people to buy the wine online or visit the site in the first place, plus how to get the wholesale and retail market onboard. What can you do to pull the market to you rather than continually have to push messages out? And how can you use online marketing rather than offline?
Kreston Reeves have a team of experts that can help you accelerate your business growth.
VAT and Duty
There has been a significant increase in vineyards and wine production in the UK and demand for UK wine is strong. Whilst this creates great opportunities including the potential export of wine, the question of VAT and excise duty must not be overlooked as it can be a big issue for some businesses to navigate.
Whilst VAT will be applicable at the standard 20%, alcohol production is subject to excise duty and the regulations and licencing requirements can be demanding and result in significant penalties if not followed. HMRC monitor the production of alcohol and related products closely and require meticulous record keeping including licenses for premises, production and sale of wine, depending on your business. You must also submit and pay a monthly duty return and HMRC can inspect premises and records on demand at an excise duty inspection.
Excise duty percentage ranges are dependent on the strength (ABV) of the wine and whether it is still or sparkling. There is also the question of when duty is applicable and whether it is appropriate to hold wine in duty suspension.
Their VAT and Duty team has extensive experience in this area and can provide assistance with excise duty and HMRC’s requirements thus avoiding any potential assessments and or civil penalties for failing to comply.
To find out more Viticulture at Kreston Reeves