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Ensuring a sustainable and prosperous convenience industry in Scotland

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Commission Changes - SGF and PayPoint Move Quickly on Retailers Concerns

In response to widespread concerns from retailers about changes to commission rates, the Scottish Grocers’ Federation (SGF) and PayPoint have moved quickly to confirm they are actively working together to devise a range of discounted services for SGF members with PayPoint, including preferential banking arrangements.

The two organisations are in discussions with a number of banks.

Pete Cheema, Chief Executive of the SGF, commented:

“As Scotland’s premier retail grocery organisation, the SGF already offers its members a number of excellent deals that help to reduce their costs and add value to their businesses. PayPoint has always taken a very similar approach to providing support services to assist retailers in its network, such as its special account with Barclays, so it is a natural move to work closely together to develop further deals and discounts for retailers.”

“PayPoint is one of a range of vital services independent retailers offer to local communities. I  am hoping  to finalise a package of services for SGF members, both with PayPoint and one of the banks, in the very near future.”



SGF ACS Briefing on New Licensing Bill

SGF and ACS have expressed strong concerns about proposals to introduce a new licensing objective alongside the extension of overprovision powers in Scotland.

As part of its stage one scrutiny of the Air Weapons and Licensing Bill, the Scottish Parliament Local Government Committee has recommended that a new objective aimed at reducing alcohol consumption should be implemented. This would be in addition to the five licensing objectives which Boards in Scotland currently have to abide by.

SGF has worked jointly with the Association of Convenience Stores to produce a briefing paper for all MSPs in advance of a full parliamentary debate on the Bill and his written directly to the Convenor of the Committee, Kevin Stewart MSP to highlight the concerns of local shops.

SGF Head of Public Affairs John Lee said; “The Committee has pulled this out from nowhere. The draft Bill from the Scottish government did not contain this proposal and it was not mentioned in the original consultation. We feel such an objective would be unworkable – reducing consumption is best dealt with through the existing objective to promote public health.”

 ACS chief executive James Lowman said: “The existing Scottish licensing objectives significantly restrict the sale and promotion of alcohol already.  The proposal for an additional overconsumption objective is unworkable and will significantly hamper positive investment from convenience retailers in communities across Scotland.”

Download Briefing Paper Here 

SGF and ACS Call for Fairer Rates System

Retailers Call for Fairer Business Rates System in Scotland

Convenience store retailers have called for changes to the business rates revaluation system in Scotland to make the system fairer as part of a submission to the Scottish Government.

In a joint submission by the Association of Convenience Stores and the Scottish Grocers Federation, the trade bodies have called for a valuation system that is transparent, up to date, and cost effective.

ACS chief executive James Lowman said: “Business rates are a key issue for convenience retailers in Scotland, with our research showing that business rates represent up to 62% of a convenience stores’ property costs. We would like to see a rating system that is clear and understandable for retailers .”

Under the current system, business rates revaluations are carried out every five years. However, due to the delay in the upcoming rates revaluation, current rateable values are based on rental data from seven years ago when the market was at its peak.

Mr Lowman continued: “Moving to a three year revaluation period would provide more accurate rateable values and avoid the huge disconnect between the current rating list and property value fluctuations that we’ve seen over the last seven years.”

In the submission, ACS and SGF also call for further use of discretionary rate relief to help local shops, and a move to a single assessor in Scotland – a system which is currently successfully in place in England and Wales. 

Alcohol Wholesalers Registration Scheme

Alcohol Wholesaler Registration Scheme (AWRS)

Changes to trading in alcohol are taking place from October 2015. If you’re an alcohol wholesaler, or trade buyer of alcohol, you’ll need to start thinking about preparing very soon.

 Who does this scheme apply to?

The scheme will apply to existing, and new, wholesalers of alcohol, trading at or after the point at which excise duty has become payable. In addition, all businesses who trade in or retail alcohol will need to make sure in future that any UK wholesalers that they buy from are registered with HMRC. The types of business who will be affected include:-

·         alcohol wholesalers

·         brokers

·         auctioneers

·         alcohol retailers

The scheme does not apply to private individuals purchasing alcohol from retailers.

What is changing?

From October 2015, all alcohol wholesalers will apply online to HMRC for AWRS registration, then from April 2017, all businesses who trade in or retail alcohol will need to make sure that any UK wholesalers they buy from are registered with HMRC

Alcohol for wholesale or retail being purchased directly from abroad, or from another retailer whose wholesale sales are purely incidental to their retail business, is not affected.

What the registration scheme will do

Alcohol fraud costs UK taxpayers approximately £1.3billion each year in lost duty and VAT. The new scheme will introduce measures designed to prevent the wholesale of duty evaded alcohol, making it more difficult for organised criminals to distribute their products in the UK. HMRC wants to remove illicit alcohol from alcohol supply chains, reduce the amount lost in duty and VAT and level the playing field across the alcohol trade for all legitimate traders.

What alcohol wholesalers will need to do

All alcohol wholesalers, including those who already hold other excise registrations, will have to submit their AWRS application between October and December 2015. In January 2016, HMRC will begin assurance work to determine whether the applicants are ‘fit and proper’ to be accepted onto the register and by definition continue to trade in the alcohol sector.

For a business to be considered ‘fit and proper’ HMRC will assess its application and then, if necessary, carry out a pre-registration visit.

Fit and proper

HMRC will be looking to make sure that:

  • there is no evidence of illicit trading
  • the applicant, or any person with an important role in the business has not previously been involved in any significant revenue non-compliance or fraud
  • there are no connections between the business, or key persons involved in the business, with other known non-compliant or fraudulent businesses
  • key persons involved in the business have no unspent criminal convictions which we consider relevant - for example offences involving any dishonesty or links to organised criminal activity
  • the application is accurate and complete and there has been no attempt to deceive
  • there have not been persistent or negligent failures to comply with any HMRC record-keeping requirements
  • the applicant has not previously attempted to avoid registration and traded unauthorised
  • the business has provided sufficient evidence of its commercial viability and/or credibility
  • there are no outstanding, unmanaged HMRC debts or a history of poor payment
  • the business has in place satisfactory due diligence procedures to protect it from trading in illicit supply-chains.

The criteria above are not necessarily exhaustive. HMRC may refuse approval to a wholesaler for reasons other than those listed if they have concerns that the applicant is a serious risk to the revenue.

Now is the time for businesses to review their processes and supply chains to make sure they are sourcing only legitimate alcohol. This is vital because HMRC will look for evidence that applicants have good standards of record keeping and robust safeguards to avoid exposure to the illicit trade. This includes effective due diligence on their suppliers and, where appropriate, their customers.

HMRC will check all applications and carry out any necessary visits between January 2016 and April 2017. Wholesalers will therefore hear the outcome of their applications at different times, but certainly by April 2017. Critically, where a business fails the scheme’s ‘fit and proper’ test, HMRC may remove its right to wholesale alcohol at any time during the introduction of the scheme. After April 2017, wholesalers and alcohol trade buyers (for example brokers, auctioneers, alcohol retailers) must also source alcohol only from HMRC approved businesses (unless they are buying direct from abroad or from another retailer whose wholesale sales are purely incidental to their retail business).

 What alcohol trade buyers need to do

HMRC is currently asking trade buyers to review their supply chains to satisfy themselves they are doing all they can to only source genuine tax-paid alcohol.  Buyers might check that their own wholesalers are aware of the scheme, so they can prepare for the changes. From April 2017 trade buyers must only buy alcohol from HMRC approved wholesalers. HMRC will provide an online look-up database of approved traders for buyers to use and  using this  to check the validity of wholesalers will form part of the buyer’s ‘due diligence’ processes.


New criminal and civil sanctions will be introduced for wholesalers and trade buyers caught purchasing alcohol from non-registered wholesalers. Penalties for wholesalers will start from 1 January 2016, while penalties for buyers will start from April 2017. In addition, any alcohol found in the premises of unregistered businesses may be seized, whether or not the duty has been paid.

Businesses will have a similar right to review and appeal, as they do for other HMRC regimes, for any civil penalties raised or decisions related to their approval. 

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