From 5 October suppliers with more than 250 full-time equivalent employees must make a minimum charge of 5 pence for single-use carrier bags used with goods which are sold or delivered to a person in England.

HMRC says that whether or not a VAT registered supplier comes within the scope of the compulsory charge, any amount charged for a bag is tax inclusive at the standard rate of VAT. For example, where a VAT registered business charges 5 pence, the taxable amount will be 4.17 pence and the VAT 0.83 pence.