Shops employing more than 250 people in England have had to charge for single-use carrier bags at a minimum of 5p per bag from Monday 5 October, but accountants have warned there are VAT and direct tax consequences these businesses must consider. Alan Pearce (Blick Rothenberg) commented: ‘While this is part of the government’s green policy, VAT at 20% will need to be paid over to HMRC on the sale of each bag and any profits gained from the sale of the bags will need to be included in the calculation for corporation tax.’
Shops employing more than 250 people in England have had to charge for single-use carrier bags at a minimum of 5p per bag from Monday 5 October, but accountants have warned there are VAT and direct tax consequences these businesses must consider. Alan Pearce (Blick Rothenberg) commented: ‘While this is part of the government’s green policy, VAT at 20% will need to be paid over to HMRC on the sale of each bag and any profits gained from the sale of the bags will need to be included in the calculation for corporation tax.’
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