Plastic Packaging Tax, Just Around the Corner

What is the plastic packaging tax?

Due to take effect from 1 April 2022, the tax will apply to plastic packaging manufactured in, or imported into the UK where the plastic used in its manufacture is less than 30% recycled. The rate of tax will be £200 per metric tonne of plastic packaging. 

Who is likely to be affected?

UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK.

For those who are likely affected, there will be an exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.

HMRC stresses that affected businesses should act now to make sure they have the necessary information, invoicing and reporting  system requirements to comply with the new provisions. 

Businesses that manufacture or import ten or more tonnes of plastic packaging over a 12-month period will need to register for the tax. 

The government says that an online service to register and pay will be available on 1 April 2022. 

Economic Incentive

According to the government the Plastic Packaging Tax will be set at a rate that provides a ‘clear economic incentive’ for businesses to use recycled material in the production of plastic packaging. The government hopes that this, in turn, will create greater demand for this material and ‘stimulate increase levels of recycling’. 

Time is running out for businesses to adapt their processes before the introduction of the Plastic Packaging Tax at the beginning of April. If you require assistance, please to not hesitate to get in touch.