One Month to Vaping Duty: UK Businesses Face 1 October Compliance Deadline

UK businesses across the vaping supply chain have one month to finalise compliance preparations before Vaping Products Duty and the Vaping Duty Stamps Scheme become mandatory on 1 October 2026, according to HMRC^[1].

The new excise duty of £2.20 per 10ml will apply to all vaping liquids manufactured in or imported into the UK, whether they contain nicotine or not^[1]. Alongside the duty, a mandatory stamp scheme will require valid vaping duty stamps on all products released for retail sale from 1 October^[1].

Rachel Nixon, HMRC's Director of Indirect Tax, said: "With one month to go until Vaping Products Duty comes into force, manufacturers, importers and warehousekeepers should have applied to HMRC for approval and be preparing to pay any of the new excise duty due, to comply with the new requirements from 1 October 2026."^[1]

Which Businesses Must Comply

The compliance requirements affect businesses operating at multiple points in the vaping supply chain. Manufacturers producing vaping products in the UK, companies acting as UK representatives for overseas manufacturers, and warehousekeepers storing duty-suspended vaping products must all obtain HMRC approvals to continue trading from 1 October 2026^[1].

HMRC has warned that businesses without the necessary approvals by the deadline "cannot produce vaping products in the UK and may be unable to trade"^[1]. The authority added that non-compliant businesses "could also face operational delays and may be subject to civil or criminal sanctions"^[1].

Retailers and wholesalers, while not required to obtain manufacturing approvals, must ensure that products they sell from 1 October carry valid vaping duty stamps^[1]. This places an onus on supply chain verification, as retailers stocking non-compliant products could face enforcement action.

How the Duty Works

Businesses liable for Vaping Products Duty will need to account for and pay the duty when the 'duty point' is triggered^[1]. For products entering a duty-suspension arrangement - such as those held in bonded warehouses - payment of the duty is deferred until the products leave duty-suspension^[1].

The measures form part of the government's wider public health strategy. HMRC states that the duty and stamp scheme "support the government's ambition to tackle youth vaping and improve public health"^[1]. The excise duty will come into force alongside tobacco duty increases, together forming "part of the government's wider plans to create a smoke-free generation, tackle youth vaping and help adult smokers to give up tobacco"^[1].

Register Context: UK Business Landscape

While HMRC has not published sector-specific compliance statistics, the CompanyPulse company register^[2] provides economy-wide context for the scale of regulatory change facing UK businesses. As of 1 September 2026, 5,568,816 companies were active on the UK register^[2].

Across all sectors, London remains the largest concentration of registered companies, with 1,031,967 businesses based in the capital^[2]. Manchester follows with 100,831 companies, then Birmingham with 90,387^[2]. Other major business centres include Glasgow (69,253 companies), Edinburgh (57,359), Bristol (55,411), Cardiff (51,682), Leeds (49,349), Liverpool (45,688), and Leicester (43,465)^[2].

Recent incorporation activity shows 11,964 new companies were registered across all UK industries in the seven days to 1 September 2026^[2]. Daily incorporation counts fluctuate significantly - for example, 2,670 companies were incorporated on 1 September 2026, compared with 587 on 31 August 2026^[2] - though these variations may reflect data processing timings rather than genuine business formation patterns.

The broader insolvency picture shows 109,757 UK companies currently in liquidation, 4,630 in administration, 2,354 in voluntary arrangements, and 1,083 in receivership^[2]. These economy-wide figures illustrate the scale of business churn across all sectors, though no sector-specific data for vaping businesses is currently available.

What Happens After 1 October

From 1 October 2026, vaping duty stamps will begin appearing on retail packaging^[1]. The stamps serve as visible proof that duty has been paid or accounted for, similar to existing schemes for tobacco products and spirits.

For businesses still seeking approvals, time is running short. HMRC's warning that unapproved manufacturers "cannot produce vaping products in the UK" from the deadline suggests enforcement will begin immediately^[1]. The reference to "civil or criminal sanctions" indicates that non-compliance could result in financial penalties, prosecution, or both^[1].

The duty rate of £2.20 per 10ml means a standard 10ml bottle will attract £2.20 in duty, while larger 30ml bottles will face £6.60 in excise charges. These costs will likely be passed through to consumers, though the degree of pass-through will depend on competitive dynamics within the retail market.

With the countdown to 1 October 2026 now under way, businesses across the vaping supply chain face a tight window to ensure compliance systems, stamp procurement, and duty accounting processes are operational.