Plastic Packaging Tax Update

In 7 days the UK Government will introduce a new Plastic Packaging Tax (PPT) on the 1 April 2022. After this time, tax at the rate of £200 per tonne will have to be paid on any plastic packaging that falls within the tax rules. The tax applies when the plastic packaging component does not contain a minimum of 30% recycled content. If you manufacture or import packaging, you will need to take steps to establish your status within the tax.

HMRC updated their guidance, click here to see the latest.

Does PPT affect me?

Companies that manufacture or import more than 10 tonnes of plastic in a 12 month period and carry out a substantial modification will have to register and pay tax where appropriate. These companies will have to register and keep additional records to calculate and pay the tax.

Plastic packaging is assumed not to meet the recycled content test unless it can be proven that it does.

Printing has been designated as a 'substantial modification' so many packaging producers will fall within the scope of the tax.

It is vital that companies have a full understanding of how PPT impacts the printing sector, what are components, what are the exception rules, how would waste be handled, how would mixed material products be assessed etc.

The supply chain could find itself with a “joint and several liability” claim if PPT has not been paid on qualifying components.

Companies that import or manufacture plastic packaging will have to keep records of all qualifying and non-qualifying components.

Gain a further understanding of if you will need to pay PPT by checking the HMRC website. Click here for more information.

8 Steps recommended by HMRC

1. Work out which packaging is subject to Plastic Packaging Tax.
2. Decide if you need to register for the tax.
3. Work out the weight of the packaging you manufacture or import.
4. Check when you must register for the tax.
5. Find out how to register.
6. Check which records and accounts you must keep and how to carry out due diligence.
7. Read how to claim a credit or defer paying Plastic Packaging Tax (if applicable).
8. Find out how to complete your return.

How do you get up to speed with PPT?

Do your research – Go to the HMRC website where they provide a collection of guidance you should follow for Plastic Packaging Tax (PPT).

View available resources – Check out recordings of previous PPT webinars delivered by the BPIF.

Engage – Attend upcoming events to seek further insight, see below.

Ask questions – If you still require help email the PPT helpdesk, [email protected].

Continued support...

The BPIF is providing support to the industry through updates, roundtables, webinars and guidance, which will be shared here.

Post-implementation of the legislation there will be an array of activity to provide companies with support and insight. We currently have the following events in the calendar:

Plastic Packaging Tax (PPT) Clinic, 11 April at 9am

Plastic Packaging Tax (PPT) Introduction, 28 April at 2pm

Plastic Packaging Tax (PPT) Process, 19 May at 2pm

The Plastic Packaging Tax Helpdesk will continue to be there to provide insight, support and guidance [email protected].