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Advice on how to avoid unexpected tax problems with the new charges for single-use carrier bags.
KEY POINTS
- A minimum 5p compulsory charge for “single-use carrier bags” applies in England from 5 October 2015.
- Exemption from the charge for small and medium-sized suppliers.
- Annual reports must be made from 31 May 2016.
- Although this is a statutory charge VAT will apply.
- Profits are expected to be donated to good causes.
- Corporates may need to consider donation timings to avoid a loss of tax relief.
Recent press reports suggested that the introduction of the minimum 5p compulsory charge for “single-use-carrier bags” on the purchase of goods at larger shops and stores in England from 5 October 2015 would cause chaos at checkouts. This was perhaps an exaggeration. However the reporting requirements additional costs and risk of penalties...
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