Northern Ireland is set to charge a levy on carrier bags from Monday 8 April. The five pence tariff will be introduced on single-use bags, with retailers paying the proceeds to the Department of Environment (DoE) Northern Ireland.
When the minimum 5p is charged by a retailer, it will be passed in full to the DoE. A business that demands extra will be required to hand over the amount less VAT, and the tax will be due to HMRC as if each bag were a standard rate item.
Northern Ireland is set to charge a levy on carrier bags from Monday 8 April. The five pence tariff will be introduced on single-use bags, with retailers paying the proceeds to the Department of Environment (DoE) Northern Ireland.
When the minimum 5p is charged by a retailer, it will be passed in full to the DoE. A business that demands extra will be required to hand over the amount less VAT, and the tax will be due to HMRC as if each bag were a standard rate item.
All receipts in respect of single-use carriers should be brought into account in calculations of trading profits for the purposes of corporation tax and income tax.
A deduction for the net proceeds payable to the DoE Northern Ireland is available. Figures should be adjusted for VAT when accounts are drawn up on a VAT-exclusive basis.
