Plastic Packaging Tax

HMRC are to introduce a Plastic Packaging Tax from 1 April 2022. The aim is to incentivise businesses to use more recyclables in the manufacture of plastic packaging. In turn, this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.

Who is likely to be affected?

UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK may be liable.

However, most businesses will not be affected as there is an exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.

Reasons for introduction

This is a new tax that will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. Plastic packaging is packaging that is predominantly plastic by weight.

It will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.

Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.

Costs

PPT will be charged at a rate of £200 per metric tonne of the chargeable plastic packaging.

Registering for the tax – Manufacturers or importers of 10 or more tonnes of plastic packaging over a 12-month period must register for the tax with HMRC.

How to register – To register, you may need to provide the following information:

• your business type
• your businesses address and contact details
• the date your business became liable for Plastic Packaging Tax
• an estimate of how much finished plastic packaging you expect to manufacture or import in the next 12 months
• a customer reference number, which could be your:
  • Corporation Tax Unique Tax Reference
  • Self Assessment Unique Tax Reference
  • Company Reference number
  • Charity Registration number
  • National Insurance number
  • temporary National Insurance number