This measure is coming although the start date is not yet known. Janet Hood considers the implications for customers and retailers.

Janet was having a chat with her local shop keeper on the realities of minimum pricing – set in Scotland at 50p per unit. The shop is part of a well known UK wide convenience store  chain. They had a very good offer on her favourite Shiraz at £4.90 per bottle. The percentage alcohol per volume was marked as 14%. When minimum pricing comes in that bottle will not be able to be sold at less than £5.25.

How was that worked out? Well not in her head, but by applying the Scottish Government formula:

MPU x S x V x 100

where MPU is minimum price per unit in £’s, S is the strength of the alcohol as a percentage, and V is the volume of the alcohol in litres.

Initially it was a bit tricky trying to work out what these terms meant as the bottle was labeled as follows

14% vol - this is the strength of the alcohol and means the amount of alcohol in the wine

75cl - is the volume or amount of alcoholic liquid in the bottle or the wine

£0.50 is the minimum price per unit

Therefore the minimum price is:

0.50 (MPU) x 0.75 (Volume) x 14/100 (Strength, as % per volume) x 100 = £5.25

A litre bottle of whisky at 40% strength currently being sold for £13.00 per bottle will have a minimum cost:

0.50 (MPU) x 1.00 (Volume) x 40/100 (Strength, as % per volume) x 100 = £20.00

If we were in England or Wales where minimum pricing is likely to be set at 40p per unit the wine would be able to be sold at £4.20 and the whisky at £16.00.

If you sell alcohol together with other products for a single price - say in a hamper - the alcohol must be sold at minimum price however the other items can be priced as you wish.

Takeaway food premises are being targeted by HMRC across Scotland - a potentially costly business

On a separate matter, a word of warning for the operators of takeaway food premises:

HMRC officers are intending unannounced visits to takeaway premises across Scotland. Visits are likely to be at weekends or after busy trading days, late at night after they have observed how targeted premises are trading. They will be looking at numbers of customers going in and out of premises and calculating the likely number of transactions made.  The HMRC officers can interview staff, check tills and run a “Z” report to ensure that all monies likely to have been made have gone through the till. They are entitled to take copies of documentation.

The aim of this initiative is to identify undeclared income. They will charge a penalty of 100% of any VAT not declared and will likely take criminal proceedings if they find discrepancies.

If you or someone you know would like detailed advice on how to prepare for these visits, or if you have already been targeted and require assistance in dealing with HMRC

DON’T DELAY

Contact James and George Collie, Solicitors, 1 East Craibstone Street, Aberdeen, AB11 6YQ

Tony Dawson 01224 581581; e: This email address is being protected from spambots. You need JavaScript enabled to view it. or

Janet Hood 0771 888 2837; e: This email address is being protected from spambots. You need JavaScript enabled to view it.