The Plastic Packaging Tax is here –  will it affect your business?

If you manufacture or import ten or more tonnes of plastic packaging within a 12 month period, you may need to register for the new plastic packaging tax (PPT).  The tax will come into force on 1 April 2022 and will be charged at a rate of £200 per tonne.

Do I need to register for PPT?

You need to register for the Plastic Packaging Tax if you’ve manufactured or imported 10 or more tonnes of finished plastic packaging components within the last 12 months, or will do so in the next 30 days.  From 1 April 2022 to 30 March 2023, the 12 month threshold will be worked out differently.

What if the plastic I import is recycled?

Plastic Packaging Tax only applies to manufacturers and importers of plastic packaging components which contain less than 30% recycled plastic.

Packaging should only contain recycled plastic where it is permitted under other regulations and food safety standards.

Can I claim a credit or defer paying the Plastic Packaging Tax?

You may be able to defer the liability to pay the tax, or claim tax back on your tax return if the packaging is either:

• exported
• converted into different packaging

Follow this link to understand the detail

https://www.gov.uk/guidance/claim-a-credit-or-defer-paying-plastic-packaging-tax

What should I do next?

Below are a series of steps to take when deciding if you should pay the tax with relevant links to the governments’ advice:

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.

For the most up to date guidance on this tax follow the link below

https://www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packaging-tax

If you have any questions or queries get in touch with our tax team here