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Plastic packaging tax

The Plastic Packaging Tax (PPT) came into force in the UK on the 1st April 2022, at a rate of £200/tonne on plastic packaging with less than 30% recycled plastic and your business’s liability date is the 1st May 2023, if you have manufactured, or imported above the threshold.

It is estimated that 20,000 businesses, across a broad range of sectors, fall within the regime and will need to submit quarterly returns to HMRC, detailing weights of plastic packaging and components imported into the UK or manufactured in the UK, containing less than 30% recycled content.

Even where a business does not fall within the regime, consideration needs to be given to the liability provisions in the primary legislation, which may mean due diligence processes need to be implemented and/or related commercial decisions need to be taken.

Businesses will need to conduct regular checks to ensure plastic packaging does not fall below the 30% threshold or else face fines. This means keeping a record of all checks conducted as well as completing plastic packaging tax returns over the accounting periods if the business is liable to pay the tax.

Manufacturers or importers of 10 or more tonnes of plastic packaging over a 12-month period should be registered for the tax.

Plastic packaging which contains at least 30% recycled plastic or is exempt from the tax because it is used for medicinal products or is set aside for a non-packaging use must still be factored into the total to determine if a business must register for the tax.

Registration is required if:

  • At any time after 1st April 2022 a business expects to import or manufacture at least 10 tonnes of plastic packaging in the following 30 days. In that case registration is required within 30 days of the first day that this condition is met; or
  • A business has manufactured or imported at least 10 tonnes of plastic packaging in a 12-month period ending on the last day of a calendar month. In that case the business becomes liable for PPT from the first day of the next month and must register by the first day of the subsequent month.

In the first year of the tax, a business only needs to register for the tax when the amount of plastic packaging exceeds 10 tonnes in a 12-month period from 1 April 2022.

If either of these conditions is satisfied, registration is required even if a business’ packaging is not chargeable and it does not have to pay any tax.

RESOURCES

Check if you are liable and need to register for Plastic Packaging Tax
Register for Plastic Packaging Tax

If you have any questions regarding the PPT EMAIL Colin Redman for more information, advice and guidance.