Plastic Packaging Tax

So, what is the Plastic Packaging Tax anyway?  

We all remember the plastic bag tax which was effective in creating major change in the behaviour of consumers. The government is confident that the new Plastic Packaging Tax (PPT) will have similar effects on the behaviour of businesses. It is due to come into effect from the 1st of April 2022.

The new 30% recycled plastic threshold

This tax applies to plastic packaging, which is produced within, or imported into the UK containing less than 30% recycled plastic. The term ‘plastic packaging’ refers to packaging that is predominantly plastic in weight. The tax will therefore not apply to any packaging that is not predominantly plastic in weight, or which contains at least 30% recycled plastic. Whether filled or unfilled imported plastic packaging will be liable to the tax. 

Facts about the Tax

• PPT will come into effect from the 1st of April 2022.
• This tax applies to plastic packaging, which is produced within, or imported into the UK containing less than 30% recycled plastic when measured by weight.
• It applies to businesses that manufacture or import plastic packaging components or import packaged goods into the UK.
• Importers and manufacturers of less than 10 tonnes of plastic packaging per year are exempt from the tax.
• All packaging that is liable will be taxed at £200 per tonne unless valid evidence is provided to prove the contents of the packaging is sufficient.

How to prepare for the tax

If you are liable for the tax you will need to register your business on or before the April 2022 deadline. To prepare check if you need to keep records. Plastic packaging is assumed to not meet the recycled content test unless you are able to demonstrate that it does. Businesses must be able to measure the weight and % of recycled materials. If you sell packaging these items must be labelled with this information. Take into consideration that you may need to amend your paperwork such as invoices to show a customer how much Plastic Packaging Tax has been paid on the goods. Lastly consider your equipment must be able to record, analyse and report on those numbers. 

Want more information? Visit HMRC: www.gov.uk/hmrc