Craft Beer Laws Explained: What Every Brewer Needs to Know

If you love making or selling craft beer, you’ve probably heard the phrase “regulations are a headache.” It’s true, but the rules aren’t impossible. Knowing the basics can keep you out of trouble, save money, and let you focus on brewing great beer.

Key Regulations for Small Brewers

The first thing to sort out is your alcohol license. In the UK, you’ll need a Personal Licence if you’re the one serving the beer, plus a Premises Licence for the site where you brew or sell. The licence fee depends on the size of your operation and the type of drinks you plan to offer. If you’re a homebrew hobbyist, you can brew up to 200 liters a year without a licence, but once you cross that line, the law says you need to register with HM Revenue & Customs (HMRC).

Tax is another big piece. Beer is taxed by volume, not by alcohol strength, which means a 500‑ml bottle of 5% ABV costs the same tax as a 500‑ml bottle of 8% ABV. HMRC publishes a clear table of rates, and they expect you to keep accurate records of production, sales, and waste. Missing a tax payment can lead to fines or even a forced shutdown.

Labeling rules matter, too. Every bottle must show the alcohol by volume (ABV), the volume, and the name and address of the bottler. If you use any health claims (like “low calorie”), you must have scientific evidence approved by the Food Standards Agency. Forgetting a label detail can result in a recall.

Staying Compliant and Avoiding Penalties

Keep a simple spreadsheet of every batch you brew. Note the date, volume, alcohol content, and where it goes (sale, donation, waste). This log makes it easy to fill out the quarterly returns HMRC asks for. If you’re unsure about a number, err on the side of over‑recording – it’s easier to adjust later than to admit you missed something.

When you expand, check the local council’s zoning rules. Some areas restrict brewing in residential zones, or they might require a change of use permit. Talk to the council before you add extra fermenters or start selling directly to the public.

Finally, don’t ignore the community. Join a local brewers’ association. They often have workshops on licensing, tax filing, and best practices. Learning from others who’ve already navigated the paperwork can save you weeks of guesswork.

Bottom line: the craft beer law landscape looks tangled, but break it down into licence, tax, label, and local rules, and you’ll stay on the right side of the law. Stay organized, ask for help when you need it, and keep brewing the beers you love.