Vaping Duty Registration Opens: HMRC Announces New Tax Requirements for UK Businesses

HMRC Opens Vaping Products Duty Registration

HM Revenue and Customs (HMRC) has opened applications for the new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) Scheme, with applications for approval opening today (1 April 2026)^[1]. The new excise duty, which comes into effect from 1 October 2026, requires UK vaping product manufacturers, importers and warehousekeepers to register for approval^[1].

According to HMRC's announcement^[1], businesses must provide required information now to begin the approval process, which takes at least 45 working days if additional information is needed. Rachel Nixon, HMRC's Director of Indirect Tax, stated: "From 1 April 2026, UK vape manufacturers, importers and warehousekeepers can apply to HMRC for Vaping Products Duty and Vaping Duty Stamps Scheme approval, which is essential for these businesses to continue trading legally from 1 October"^[1].

UK Company Landscape and Registration Requirements

The CompanyPulse company register^[2] contains 5,683,066 total companies, with 5,413,484 currently active. The database shows significant business activity across the UK, with 17533 new company incorporations recorded in the past seven days^[2].

The new vaping duty forms part of the government's Plan for Change to create a smoke-free generation and tackle youth vaping^[1]. HMRC guidance published today explains which vaping products are liable for the new excise duty and outlines the roles and responsibilities across the supply chain^[1].

Geographic Distribution of UK Businesses

Analysis of CompanyPulse data^[2] reveals the concentration of UK businesses across major cities. London leads with 1,054,456 companies, followed by Manchester with 102,418, Birmingham with 92809, and Glasgow with 71,090^[2]. Other significant business hubs include Edinburgh (57,528), Bristol (55,824), Cardiff (51,569), and Leeds (50,373)^[2].

The data shows retail and e-commerce sectors remain substantial parts of the UK economy, with 205,133 companies operating under the "Retail sale via mail order houses or via Internet" classification^[2].

Compliance Timeline and Registration Process

The registration process requires businesses to act promptly. According to HMRC^[1], from 1 October 2026, the information provided during registration will determine when duty becomes payable, making early registration essential. The guidance encourages businesses to visit GOV.UK and search for 'vaping duty' to access the published guidance^[1].

HMRC's announcement emphasises that the new guidance "brings all the key information together, and using it now will help firms prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October"^[1].

Enforcement Context and Director Responsibilities

The importance of regulatory compliance is highlighted by recent enforcement actions. On 1 April 2026^[3], the Insolvency Service announced the sentencing of Bharat Jogia, a disqualified director who continued running two pharmaceutical companies for more than five years while banned^[3].

Jogia, who was disqualified for 13 years in 2014, controlled Diamond Pharma Limited and BHJ Consulting Ltd despite his ban, receiving over £80,000 in consultancy fees^[3]. He was sentenced to nine months in prison, suspended for 18 months, and disqualified as a director for an additional 10 years when he appeared at Birmingham Crown Court on 27 March^[3].

Mark Stephens, Chief Investigator at the Insolvency Service, commented: "Director disqualifications exist to protect the public and maintain confidence in UK businesses. When someone is banned from running companies, it is because they have proven themselves unfit to do so"^[3].

Looking Ahead: Implementation and Compliance

As the vaping industry prepares for the new duty regime, the six-month window between registration opening and implementation provides businesses time to understand their obligations and ensure compliance. The CompanyPulse database^[2] shows 108,430 companies currently in liquidation and 16,327 in administration across all sectors^[2], underscoring the importance of proper regulatory compliance and financial planning.

With the Vaping Products Duty applying from 1 October 2026^[1], affected businesses must navigate the registration requirements while maintaining their existing operations. The requirement for duty stamps and the detailed supply chain responsibilities outlined in HMRC's guidance suggest a comprehensive regulatory framework designed to support long-term compliance and stem illicit trade^[1].