It is estimated that 20,000 manufacturers or importers, including those involved in packaging and industrial manufacturing of consumer goods, as well as food and beverage producers, and the pharmaceutical and chemical sectors, should be registered for the tax, with the liability date on the 1st May 2023.
The Plastic Packaging Tax (PPT) came into force in the UK on 1st April 2022 and applies at a rate of £200/tonne on plastic packaging with less than 30% recycled plastic, manufactured or imported into the UK, including packaging on goods which are imported.
Businesses that fall within the PPT regime must submit quarterly returns to HMRC detailing weights of plastic packaging components imported, and that which contain 30% or more recycled content.
They will need to conduct regular checks to ensure plastic packaging does not fall below the 30% threshold or they will face fines, which means keeping a record of all checks conducted, as well as completing plastic packaging tax returns over the accounting periods.
PPT applies at a rate of £200 per tonne for companies that manufacture or import filled or unfilled plastic packaging greater than 10 tonnes per year and it is critical to note that even when organisations meet the 30% recycled plastic content threshold and do not pay tax, they must still register for PPT if they pass the 10 tonne condition.
PPT will be due from other businesses in the supply chain that are secondarily liable; these related businesses must also conduct an internal review of their packaging strategies.
In the first year of the tax, a business only needs to register for the tax when the amount of plastic packaging exceeds 10 tonnes in a 12-month period from 1st April 2022.
RESOURCES
Check if you are liable and need to register for Plastic Packaging Tax
Register for Plastic Packaging Tax
To discuss your PPT situation, exemptions and compliance, please EMAIL our Logistics & Customs Compliance Manager, Chloe Henshall, who can take you through the implications.
