Plastic Packaging Tax
Helping prepare your business
Plastic Packaging Tax
Let’s start with… an introduction
On the 1st April 2022 the government introduced the Plastic Packaging Tax (PPT), which is a new tax on plastic packaging.
The
HMRC Plastic Tax Portal
opened for registration on the 1st April 2022.
The aim of the tax is to
encourage the use of recycled material in plastic packaging instead of virgin material. This will help to create greater levels of collection and recycling of plastic packaging waste within the UK.
Kite Environmental Solutions are partnering with companies to
provide support and guidance
with our
data management service, to help calculate your obligation.
Tell me about… the plastic tax
Any plastic packaging items manufactured or imported into the UK, containing less than 30% recycled plastic will be liable under the tax and will be charged by HMRC at £210.82 per tonne.
The types of plastic packaging included within the tax are:
• plastic packaging manufactured in the UK
• imported plastic packaging
• imported filled plastic packaging
From the top… who’s affected?
Companies who manufacture, import filled or unfilled plastic packaging, equating to more than 10 tonnes in a 12-month rolling period, will be required to register with HMRC.
You do not need to directly pay the tax if you do not manufacture or import plastic packaging, or if you do not perform a further substantial modification. This should have already been incorporated into the packaging price.
Tell me… are there any exemptions?
Some plastic packaging will be out of scope of the tax:
• transport packaging on imported goods around multiple sales units
• packaging used in aircraft, ship & rail goods stores
• packaging used in the long term storage of goods
• packaging that is an integral part of the goods
• packaging that is reused in the presentation of goods
Some plastic packaging is reported on, however exempt from paying the tax:
• packaging that contains 30% or more recycled content
• packaging that is exported outside of the UK
• packaging in the immediate contact of human medicines
• packaging permanently set aside for
non-packaging use
So… what can I do?
Keep records of the plastic packaging you manufacture, import into the UK, or import as filled product, regardless of whether you are liable to register or not. This is to help demonstrate why and when you may need to register.
When you reach the 10 tonne threshold you are required to register with HMRC, within 30 days. We can provide you with a guide for the information required for this process as part of our data management service, just contact one of the team on 024 7642 0080.
Once you have registered, you will need to submit quarterly returns. The accounting periods are:
- 1st April – 30th June
- 1st July – 30th September
- 1st October – 31st December
- 1st January – 31st March
The return and any tax to pay is due no later than the last working day of the month following the end of the accounting period reported on.
Examples of accepted evidence of recycled content for you to record include:
• product specifications
• production certificates & certificates of conformity
• sales invoice and purchase orders
Don’t be afraid… ask Kite for help
As a Compliance Scheme for the Packaging Regulations, combined with our
extensive packaging knowledge, we are well placed to
help your company assess
the impact of the plastic packaging tax and
help you register your liability.
To make complying as
stress free as possible we:
• complete an assessment to identify the plastic packaging in your business
• utilise our bespoke internal database to help with data accuracy
• provide guidance on acceptable forms of evidence
• help to complete the calculations every quarter
• provide a clear and concise report for your submission
• suggest alternative packaging solutions (we are part of the UK's leading packaging distributor)
Get on the front foot and contact a member of our team for advice on 024 7642 0080.
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Use our calculator...
Complete the calculator below to help estimate what the Plastic Packaging Tax is likely to cost your business.
Plastic Packaging Tax Calculator
If you think this may affect you give us a call on 024 7642 0080 or fill in the form below and we will keep you updated.