Helping you to get prepared for the new Plastic Packaging Tax

The government published a document on 4 October 2021 to help businesses get ready for the new Plastic Packaging Tax which will take effect from 1 April 2022.

23rd November 2021

It states the primary legislation for Plastic Packaging Tax is in law and forms part 2 of Finance Act 2021. Secondary legislation will be introduced later in the year and until the secondary legislation becomes law, the policy paper is subject to change.

The Plastic Packaging Tax policy will “encourage the use of recycled rather than new plastic within plastic packaging. This will in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration. Packaging should only contain recycled content where it is permitted to do so under other regulations, such as those covering food safety”.

Key points to note include:

  • The tax will apply to plastic packaging manufactured in, or imported into, the UK that does not contain at least 30% recycled plastic. A tax will be charged at a flat rate of £200 per metric tonne of plastic packaging.
  • Businesses that manufacture or import 10 or more tonnes of plastic packaging over a 12-month period will need to register for the tax. This is regardless of whether you will have to pay any tax. Where the packaging you import already contains other goods, the tax only applies to the plastic packaging itself.
  • The online service to register and pay will be available on 1 April 2022 when the tax takes effect.
  • The tax is intended to encourage greater use of recycled plastic. Businesses are encouraged to make changes to the packaging it manufactures or imports so that they include at least 30% recycled plastic.
  • If you’re responsible for accounting for the tax as the manufacturer or importer of plastic packaging, the requirement to include a statement with your invoice that the tax has been paid, which was due to commence in April 2022, will be delayed. However, you are encouraged to make the Plastic Packaging Tax you have paid visible to your business customers, and work with them to try and increase the amount of recycled plastic used wherever possible.
  • If your goods are intended for export, you can defer paying the tax for up to 12 months from the point of manufacture or import.

Our team of packaging specialists can support you in reviewing your existing pack methods. Contact us on 01388 420 555 or email [email protected].

Source: Get your business ready for the Plastic Packaging Tax – GOV.UK (www.gov.uk)

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