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Are you ready for the Plastic Packaging Tax?

Posted on 9 March 2022SharePrint

The new Plastic Packaging Tax (PPT) is being introduced by the Government in the hope that it will drive business towards using more recycled plastic content in the packaging around their goods.

The tax comes into force on 1st April 2022 and will be charged at a rate of £200 per tonne. It applies to manufacturers and importers of plastic packaging components which contain less than 30% recycled plastic. Although it will directly impact UK manufacturers and importers, indirectly the impact will be felt much further - with supply chains, consumers and the recycling and reprocessing industry all affected. Indeed HMRC estimate it will impact more than 20,000 UK businesses.

It is critical that you take time now to assess the impact of this new tax, both within your business and on suppliers and customers.  You must also perform due diligence when entering into relations or contracts with other businesses. If you don’t do appropriate checks or keep sufficient records of them, you could be held jointly and severally liable for any unpaid PPT.

How to register for the PPT

If you manufacture or import 10 or more tonnes of plastic packaging within a 12 month period, you may need to register for the PPT.  You will need to review what packaging your business handles and where it comes from.

When preparing to register, you should check what classifies as plastic, recycled plastic and packaging components and whether the packaging you manufacture, or import is subject to the tax.  You will be able to register from 1 April 2022 on a new HMRC Plastic Packaging Tax e-portal. Even if you do not meet the threshold to pay the tax you may still need to register.

How to work out the weight of packaging for PPT

For packaging components that you manufacture and import into the UK, you must know the:

  1. weight of packaging components and the total in kilograms
  2. percentage of recycled plastic content

You must gather supporting information and keep records to prove your Plastic Packaging Tax return calculation is correct. Your accounts must show how you’ve calculated the figures you submit on your return.

Find out more about PPT...

If you think your business is likely to fall within scope of the new tax then you can find out everything you need to know on our brand new online course: The Plastic Packaging Tax. The course is presented by Chris Smith who will explain how the tax works and answer any questions you may have about the impact on your business.  Click here to find out more…