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07 Dec 2023

How is the Licence fee calculated?

For existing processors/packers and wholesalers, the licence fee is based on the annual value of Red Tractor invoiced sales from 1st April to 31st March every year. New licensees should provide an estimate of sales. The fee is determined by the value of Red Tractor product invoiced, 0.05% (meat, poultry, dairy and wool) and 0.03% (fresh produce & combinable crops). There is a minimum and maximum fee. All fees exclude VAT. Traders pay the minimum fee. For Food Service licensees the fee is based on the % of Red Tractor claimed sales. Annual licences run from 1st April to 31st March and the licence fee is payable at application and upon renewal. The licence fee must be paid in full at the time of application or renewal and cannot be paid in installments.