29 April 2021
Retailers unsure about the levy on plastic carrier bags can watch a video explaining the new legislation.
Under Government policy, retailers of all sizes in England will now be legally required to charge at least 10p for a single-use carrier bag. Previously only larger retailers employing more than a certain number of staff were required to charge for such bags.
It was originally thought the increase in the price of carrier bags was to be enforced from the end of April, 2021, but according to the Association of Convenience Stores (ACS) it's now due to apply from mid-May.
The ASC has a helpful video to explain why and how the new charges work, who has to pay them, and where the money should go.
However, it was produced before the Government made the bag charge lawful and so that while it suggests voluntarily charging for bags, this is set to become a legal requirement from next month.
Bira will keep members up-to-date with any further information regarding the levy as soon as it becomes available.
Is there VAT on carrier bags?
The charge is subject to VAT. If a retailer is VAT registered and sells a bag for 10p VAT of 1.66p is paid to HMRC per bag. Businesses are encouraged to donate the profits from the carrier bag charge to charity.
More details in this article from the Retail Gazette
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