Plastic Packaging Tax

A new environmental charge was introduced by the Government on 1 April 2022 called the “Plastic Packaging Tax” (PPT) to encourage the reduction in use of plastics and promote the use of recycled plastics.

The charge is £200 per tonne and applies to plastic packaging produced in or imported into the UK.  Plastic packaging is defined as packaging that is predominantly plastic by weight.  The charge will not apply to any plastic packaging that contains at least 30% recycled plastic.

Businesses which manufacture or import more than 10 tonnes of plastic packaging in a 12 month period, or which will manufacture more than 10 tonnes in the following 30 days are required to register with HMRC for the PPT.  There are some reliefs from the tax available for plastic packaging that is:

• used in the immediate packaging of a medicinal product
• used in the transport of imported goods, e.g. the plastic wrapping which secures goods to a pallet;
• used as aircraft, ship and rail stores;
• comprised of components that are permanently designated or set aside for use other than a packaging use; and
• exported from the UK

The first quarterly return is due for the period 1 April 2022 to 30 June 2022, however, the PPT does not apply anything before 31 March 2022 and therefore the limit of 10 tonnes applies to this three month period only.  As each quarter passes the relevant period to assess will increase; after 31 March 2023 the 12 month test will be applied at the end of each month. 

HMRC have published guidance on the PPT on their website here.

If you have questions or would like further information please contact us.