Compulsory VAT charges to be introduced in England.

The government has issued Revenue and Customs Brief 14 outlining the compulsory charge on carrier bags and the associated VAT, corporation tax and income tax implications. It applies to single-use carrier bags provided with goods supplied by companies with more than 250 full-time equivalent employees in England and is set at a minimum of five pence.
The amount charged for a bag is tax inclusive at the standard rate of VAT. If a VAT-registered business charges five pence, the taxable amount will be 4.17p and the VAT 0.83p. Suppliers using a retail scheme should ensure that VAT is properly accounted for through their scheme. For corporation tax and income tax, receipts from the compulsory charge on single-use carrier bags should be brought into account in calculating trading profits.
The compulsory charge comes into force in England on 5 October 2015. Such charges already exist in the rest of the UK.