After 1 April 2022, if you manufacture or import 10 or more tonnes of plastic packaging within a 12 month period, you may need to register for the new Plastic Packaging Tax (PPT). The tax applies when the plastic packaging component does not contain a minimum of 30% recycled content. If you manufacture or import packaging, you will need to take steps to establish your status within the tax.
HMRC has updated their guidance, click here to see the latest.
See below for 8 steps recommended by HMRC:
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.
Does the Plastic Packaging Tax (PPT) affect me?*
Companies that manufacture or import more than 10 tonnes of plastic in a 12 month period and carry out a substantial modification will have to register and pay tax where appropriate. These companies will have to register and keep additional records to calculate and pay the tax.
Plastic packaging is assumed not to meet the recycled content test unless it can be proven that it does.
Printing has been designated as a ‘substantial modification’ so many packaging producers will fall within the scope of the tax.
It is vital that companies have a full understanding of how PPT impacts the printing sector, what are components, what are the exception rules, how would waste be handled, how would mixed material products be assessed etc.
The supply chain could find itself with a “joint and several liability” claim if PPT has not been paid on qualifying components.
Companies that import or manufacture plastic packaging will have to keep records of all qualifying and non-qualifying components.
If you require any help, please contact us.