PPT (Plastic Packaging Tax)
We are now in the 4th quarter of PPT – 1st January to 31st March, submission for this period will need to be submitted by the end of April’ 23.
The government is also bringing forward technical changes to PPT penalties via the Finance Bill. The changes will ensure that the tax operates as intended and that taxpayers are treated fairly and consistently. The changes will simplify the late payment penalty regime for PPT and will apply to all late payments in relation to accounting periods from 1 April 2023 onwards.
From the 1st April ’23, the 10-tonne threshold for qualifying products will move to a rolling 12-month period.
Members who are close to this threshold are advised to closely review their volumes to ensure that they remain PPT compliant.
HMRC have provided an update that the requirement to include a statement with your invoice to show that Plastic Packaging Tax has been paid will no longer be introduced as a mandatory requirement. However, HMRC also encourage companies to make the Plastic Packaging Tax that has been paid visible to your business customers.
Announced at Spring Budget was that the PPT rate will be increased from £200 per tonne to £210.82 per tonne in line with the Consumer Price Index (CPI) from 1 April 2023.
This change is said will maintain the real term value of the price incentive to use recycled plastic and supports the government’s environmental goals.
The new rate will apply to all plastic packaging manufactured or imported into the UK on or after 1 April 2023. Any packaging that has been manufactured or imported prior to 1 April 2023 will be charged at the existing rate of £200 per tonne.
It should be noted that Extended Producer Responsibility sits outside and alongside PPT, and members must separately consider their position for both.
BPIF have additional support resources for EPR.
If you have a PPT query email our helpdesk at ppthelp@bpif.org.uk