PLASTIC PACKAGING TAX: STEPS TO TAKE
The government has published a document to help businesses get ready for the new Plastic Packaging Tax which will take effect from 1 April 2022.
It states Plastic Packaging Tax guidance is subject to change until all the legislation is approved by Parliament.
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 manufactured or imported 10 or more tonnes of plastic packaging within the last 12 months will need to register for the tax. From 1 April 2022 to 30 March 2023, the 12 month threshold will be worked out differently.
- 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.
- There are two types of plastic packaging subject to the tax. These are packaging designed to be suitable for use in the supply chain and single use by the consumer. Find out more here
The document also details the steps to take when deciding if you should pay the tax:
- Work out which packaging is subject to Plastic Packaging Tax.
- Decide if you need to register for the tax.
- Work out the weight of the packaging you manufacture or import.
- Check when you must register for the tax.
- Find out how to register.
- Check which records and accounts you must keep and how to carry out due diligence.
- Read how to claim a credit or defer paying Plastic Packaging Tax (if applicable).
- Find out how to complete your return
Our team of packaging specialists can support you in reviewing your existing pack methods. Contact us on 01388 420 555 or email email@example.com.