The Plastic Packaging Tax: What it is and what you need to do now

FROM 1ST APRIL 2022…

A new tax on the import or manufacture of plastic packaging that contains less than 30% recycled plastic content comes into force on 1^st April 2022.

The Government has created this new legislation in the hope that it will encourage businesses to use more recycled plastic in their packaging.

If you are a UK manufacturer of plastic packaging, or if you import 10 or more tonnes of plastic packaging within a 12-month period, you will need to register for the tax, even if all of your packaging contains 30% or more recycled plastic.

Tax will apply at a rate of £200 per tonne on plastic with less than 30% recycled plastic manufactured or imported into the UK.

Imported plastic packaging will be liable to the tax, whether the packaging is filled or unfilled.

If you import fewer than 10 tonnes of plastic, you will not need to register for the tax but there may still be additional reporting and record keeping requirements for your business.

We expect that the plastic packaging tax will most likely affect businesses in the following industries: packaging, manufacturing, online retail, food and drinks, cosmetics, chemical, and consumer goods. But the legislation has a wide scope, so many businesses will need to check whether it affects them.

If you think that your business might be affected, we suggest you begin by assessing your supply chains and amending your pricing and contracts accordingly.

You should also check that you have the necessary reporting capability to comply with the new obligations, that you are collecting the required data, and if necessary, amend your invoices.

If you have any questions about the Plastic Packaging Tax or would like to discuss how the new legislation might affect your business, our team at The Uncommon Accountants would be happy to help.

More information on the Plastic Packaging Tax can also be found on the Government website: https://www.gov.uk/government/collections/plastic-packaging-tax