What is plastic packaging tax?

Introduced from 1 April 2022, it is a new tax levied on finished plastic packaging components produced in the UK or imported in. The tax will be due if less than 30% of these components contain recycled plastic.

This tax will be levied on business that manufacture or import more than 10 tonnes of plastic packaging within any 12 month period.

How much is the tax and what exemptions are there?

The tax due will be £200 per each tonne of plastic packaging. The tax is payable by the manufacturer if the plastic is produced in the UK.

If the plastic is imported, the recipient of the plastic import will pay the tax.

As well as the 10 tonne exemption described above, additional exemptions from the tax will be included such as:

• The plastic is used for the immediate packaging of certain medical products.
• It is used for transport packaging of imported goods.
• Components that are permanently set aside for use other than packaging use.

When and how do I register for the tax?

A business will need to register when either:

• The 10 tonne threshold has been exceeded in the last 12 months (since 1 April 2022 onwards).
• The business has reasonable grounds for believing the 10 tonne threshold will be breached in the next 30 days.

Registration must take place within 30 days of the 10 tonne threshold being breached. The registration is done through the company’s government gateway account and the link for this may be found below:

https://www.gov.uk/guidance/register-for-plastic-packaging-tax

For more information on this, please contact Joe Wilson on 023 8046 1237.