Plastic Packaging Tax: what is the new levy and how can my business prepare?

The Plastic Packaging Tax – also known as the PPT – will come into force from next year.

Here’s what you need to know about the new levy designed to clamp down on plastic waste.

What is the Plastic Packaging Tax?

Coming into effect on 01 April 2022, the PPT is designed to encourage the use of recycled, rather than new, plastic.

The tax – charged at £200 per metric tonne of plastic packaging – will apply to plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30 per cent recycled.

For example, if your firm manufactures 100 tonnes of plastic packaging per year, and two tonnes contains less than 30 per cent recycled plastic, you will need to pay £400.

Who does the new tax apply to?

The PPT will impact any business that manufactures or imports 10 or more tonnes of plastic packaging a year. This includes imported plastic packaging which already contains goods (such as plastic bottles filled with liquids), but not the goods themselves.

Businesses will be required to account for the PPT even if all the plastic packaging they manufacture or import is less than 10 tonnes a year and/or contains more than 30 per cent recycled plastic.

How and when is the tax paid?

The online service to register and pay will be available on 01 April 2022 when the tax comes into force.

How can I prepare?

If you are a business that manufactures or imports plastic packaging, ensure you:

  • have the information needed to establish how much tax you need to pay, or to confirm that you have nothing to pay.
  • know how much recycled plastic is in the packaging you manufacture or import, whether any of the exemptions will apply, and how to provide evidence of this.
  • you have all the information you need about the materials used to make imported plastic packaging.
  • make the Plastic Packaging Tax you have paid visible to your business customers.
  • demonstrate that you are below the tax threshold (if applicable) and check if you become liable in the future.

Get advice today

For help and advice with related matters, please get in touch with our team today.

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Posted in Blog, Tax.