Store's £17million tax bill over wrong chicken bags

MORRISONS is facing a “crippling” £17million tax bill after using the wrong type of paper bags for its rotisserie chickens.

- BY RICHARD GITTINS

The supermarket giant was handed a bill for £17,034,932 in 2021 after HMRC ruled it liable to pay 20% VAT on store cooked spit-roast birds under controversial tax rules introduced by David Cameron’s Conservative government in 2012.

Morrisons thought it had avoided the so-called Pasty Tax on hot food, which caused widespread protests when it was introduced. Supermarkets and bakers said the extra costs would have to be passed on to customers.

The complaints led the Tories to make an amendment, allowing hot food which is cooked but allowed to cool naturally to avoid the levy.