HMRC Simplifies Excise Duty Claims Process for Salon and Barbershop Owners

HM Revenue and Customs (HMRC) has announced a streamlining of the notification process for businesses intending to claim excise duty drawback. For the modern barbershop or high-end salon that incorporates licensed bar services or manages its own product exports, this update to Form EX75 marks a shift towards more accessible administrative procedures.

Previously, notifying the authorities of an intention to reclaim duty on excise goods—such as alcohol served in-house or specific imported grooming chemicals—could be a rigid process. The latest guidance confirms that professionals can now submit their notice of intention via email or an online portal, alongside the traditional postal route, providing much-needed flexibility for busy business owners.

While excise duty might seem like a niche concern, it is increasingly relevant as the 'grooming and a drink' trend grows across the UK. If your shop returns excise goods to a supplier or exports niche products that have already had UK duty paid, claiming that 'drawback' is essential for maintaining healthy cash flow and ensuring you aren't paying more tax than necessary.

This shift towards digital notification is part of a broader move to modernise tax interactions. For salon owners, the practical takeaway is clear: efficiency is improving. By using the online or email options, you can create a digital paper trail faster, which is vital when managing the overheads of a premium service environment where every penny of margin counts.

To stay compliant, ensure that your record-keeping for excise goods is meticulous. While the notification process is now easier to trigger, HMRC still requires robust evidence of duty paid and the subsequent movement of goods. We recommend discussing these digital options with your accountant to see if your business model qualifies for duty recovery.