On 17 August 2015, HMRC published Revenue & Customs Brief 14/15, which confirms the introduction of a compulsory charge on single-use carrier bags provided with goods supplied in or to England, with effect from 5 October 2015.

Suppliers using a retail scheme should ensure that VAT is properly accounted through their scheme. There are also direct tax implications. 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.

A copy of Revenue & Customs Brief 14/15 is available to read here.