The new UK Plastic Packaging Tax (PPT) will come into force on 1 April 2022 and will be charged at a rate of £200 per tonne. The legislation is structured to incentivise the use of recycled material in the production of plastic packaging.
This measure will impact UK plastic packaging manufactures and importers of plastic packaging.
HMRC state that you need to register for the Plastic Packaging Tax if you’ve manufactured or imported 10 or more tonnes of finished plastic packaging components within the last 12 months, or will do so in the next 30 days. From 1 April 2022 to 30 March 2023, the 12 months threshold will be worked out differently.
Plastic Packaging Tax only applies to manufacturers and importers of plastic packaging components which contain less than 30% recycled plastic. Packaging should only contain recycled plastic where it is permitted under other regulations and food safety standards.
HMRC have stated that transport packaging used to import goods into the UK is exempt from Plastic Packaging Tax if it is used to both:
You should consider how this packaging is used, rather than the type of packaging it is, when determining if the exemption applies.
Examples of items covered by this exemption (when used to prevent damage of multiple sales units or grouped packaging imported into the UK) include:
Examples of items not covered by this exemption, that are subject to the tax, include:
a) used to transport goods within the UK
b) manufactured in the UK
c) imported into the UK as goods in their own right
d) used to import a single product into the UK
HMRC state that you can claim a credit or relief for finished plastic packaging which is exported from the UK if:
You cannot claim relief for transport packaging used to export goods from the UK.
HMRC state that you must keep accounts showing how you’ve worked out each entry on your quarterly tax return. Where relevant, your accounts must include:
You must keep accounts by reference to each ‘product line’ that you produce or import. A ‘product line’ is a group of plastic packaging components produced to the same specification.
If you would like more details, please call +44 (0) 118 932 8447 or email: info@icsglobalservices.co.uk