Plastic Packaging Tax Background

From April 2022, the Plastic Packaging Tax will be charged on plastic packaging which has been manufactured in, or imported into the UK and contains less than 30% recycled plastic.

The purpose of the new tax is to encourage the use of packaging that contains recycled plastic material instead of virgin material. This will in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.

Scope of the Plastic Packaging Tax

Plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic will be in the scope of the tax. The tax will be applied on per packaging component basis and will be charged at £210.82 per tonne.

Packaging included in the scope of the tax will be;

• Packaging components
• Packaging composite materials
• Filled packaging

Only post-consumer recycled material, and pre-consumer material which has been processed will count towards the 30% threshold. All methods of recycling will be permissible.

Who is going to be affected?

All businesses that manufacture or import filled or unfilled plastic packaging, totalling 10 or more tonnes over a 12-month period will need to register for the tax. 

Plastic Packaging Tax Exemptions

There are some types of plastic packaging that are exempt from the scope of the tax. These include;

• Plastic packaging manufactured or imported for use in the immediate packaging of medicinal product
• Transport (transit) packaging used to carry imported goods, e.g. pallet wrap
• Packaging used in aircraft, ship or railway stores for international journeys, i.e. not released into the UK
• Components that are designed for a use other than a packaging use

What do you need to do?

If your business meets the 10 tonne criteria, you will need to register with HMRC.

If your business is responsible for accounting for the tax as the manufacturer or importer, your invoices to business customers must show a statement that Plastic Packaging Tax has been paid.

If you are a business that manufactures or imports less than 10 tonnes plastic packaging a year, you will need to keep records of the packaging you manufacture or import, to help you identify when you may need to register.

The tax is intended to encourage greater use of recycled plastic. You may want to look to make changes to the packaging you manufacture or import so that they include at least 30% recycled plastic.

To find out how these changes will affect your business, please contact our Packaging Regulation Experts, we are here to support and guide you.