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What is the new Plastic Packaging Tax?

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Summary

This guide gives an overview of the upcoming Plastic Packaging Tax which applies to UK businesses from 1 April 2022.

Description

What's changing from April 2022?

To encourage the use of recycled materials wherever possible, from 1 April 2022, the UK Government is imposing a tax on the manufacture or import of plastic packaging with less than 30% recycled content. Where the tax applies, it’s charged at £200 per metric tonne of packaging.

Affected businesses must register ahead of time and start filing a special quarterly tax return.

Who's affected by the changes?

This affects UK companies but there's good news for smaller businesses. The threshold is 10 tonnes a year, so if the weight of packaging you import or manufacture is below this weight across a 12 month rolling period, the tax won’t apply.

Once a business reaches the 10 tonnes threshold within a 12 month period, they must register for and start applying the tax in the following quarter.

What do I need to do? 

To prepare for the new tax, we recommend you:

  • Get familiar with the legislation details and speak to your suppliers to assess whether your business is affected.
  • Consider switching to recycled materials so the tax doesn't apply.
  • If the tax will apply to you, ensure you register with HMRC and start putting processes in place to ensure your business is compliant.

To learn more, take a look at our blog or visit GOV.UK