The Government is implementing this tax to raise the efforts of businesses to use recycled plastic with hopes to reduce the amount of plastic being sent to landfill.
The tax will apply to ‘finished plastic packaging’ containing less than 30% recycled content produced in the UK or imported into the UK (including packaging on goods which are imported), at a rate of £200 per metric tonne.
What does the tax include/exclude?
The Plastic Packaging Tax includes:
- Bubble wrap
- Bin bags
- Plastic drink bottles
- Sandwich bags
- Sticky tape
The Plastic Packaging Tax excludes:
- Plastic packaging manufactured or imported for use in the immediate packaging of a medicinal product.
- Transport plastic packaging used on the transport of imported goods.
- Plastic packaging used in aircraft, ship and railway stores for international journeys.
- Plastic packaging components that are permanently designated or set aside for use other than in the containment, protection, handling, delivery or presentation of goods and the producer or person on whose behalf they were imported keeps a record of that designation or setting aside.
Examples of plastic components that will be exempt:
- Toolboxes.
- First aid boxes.
- Glasses cases.
- CD, DVD, and video game cases.
- Water cartridge filters.
- Printer or toner cartridges.
- Inhalers.
To see the full list of included and excluded items, you can click here.
Do I need to register my business for PPT?
Businesses must register for PPT if they meet any of the following conditions:
- Any time after 1 April 2022, if the import or manufacture of a finished plastic packaging is predicted to reach 10 tonnes or more in the next 30 days, then you must register within 30 days of the first day that this condition is met.
- If you have manufactured or imported 10 tonnes or more of finished plastic packaging within a 12-month period ending on the last day of a calendar month, then the company becomes liable for PPT from the first day of the next month and must register within 30 days. There is an arrangement on introduction of PPT so that a business only needs to register for the tax when the amount of plastic packaging is 10 tonnes or more in a 12-month period from 1 April 2022.
The new tax will affect many companies, including those and others, in the following sectors-
- Online retails
- Pharmaceuticals
- Cosmetics
- Oil
- Food and drinks
- Packaging manufacturing
Businesses will also need to keep evidence so that the amount of plastic packaging can be audited to HMRC. The records that businesses can keep include; the total amount in weight of the materials used to manufacture plastic packaging, excluding packaging which is used to transport imported goods, and also data used to determine whether the packaging is mostly plastic, and how much of the packaging is recycled plastic.
Businesses can also keep records to prove they are exempt from the tax. The evidence that they will need to provide includes; the weight of their exempt plastic packaging, plus the reasons for why they are exempt, and the weight of any plastic packaging that will be exported and are allowed tax relief.
How can I avoid paying PPT?
Not only will making changes to your business to avoid paying PPT help you to save money, but it will also have a positive impact on our surroundings. If more businesses take the following steps, then less and less plastic will be sent to landfills, overall improving our environment.
Your business can:
- Use less packaging
- Change to non-plastic packaging or recycled plastic.
- Use packaging which has at least 30% recycled plastic content.
Ensure that you confirm whether you will be liable to pay this tax, if so then you will need to register. Registrations cannot be submitted until 1st April, but we recommend reviewing your production and/or supply chains before this date.
You can find out more here: Register for Plastic Packaging Tax
