The Plastic Packaging Tax applies to all plastic manufactured or imported into the UK that does not contain at least 30% recycled plastic. The tax was implemented in April 2022 to encourage the use of recycled material, but how might this affect you?
Who is liable to pay the tax?
If you are a business that manufactures or imports plastic packaging components, you will be liable to pay the Plastic Packaging Tax. However, if you import or manufacture less than 10 tonnes of plastic packaging per year, you will be exempt.
What should I do if I am liable?If you import or manufacture more than 10 tonnes of plastic packaging a year, you must register with HMRC. You must keep accounts and records for at least 6 years from the end of the accounting period and of which record weight in tonnes, kilograms and grams. These accounts and records must support the information that you submit in your quarterly tax returns.
What packaging is subject to the tax?Packaging that is designed to be suitable for use in the supply chain and single-use by the consumer is subject to the tax. If your packaging is made up of more than one packaging component, you must account for the Plastic Packaging Tax on each component.
Does the Plastic Packaging Tax affect the cost of plastic packaging?Businesses that are liable for the tax will incorporate it into calculations on pricing which will then be passed down the supply chain.
What is the tax rate?The tax is applied by weight at £200 per tonne.
Are there any exemptions?There are 4 categories of packaging that are exempt from the tax:
- Products used as transport packaging to import multiple goods safely into the UK
- Products used in aircraft, ship and rail goods stores
- Products permanently recorded as set aside for non-packaging use
- Products used for the immediate packaging of licensed human medicine
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