Update 25 Oct 2021 - HMRC issue updated and simplified guidance on PPT. Please click here to go to the PPT FAQs.
The UK is set to introduce a new Plastics Packaging Tax from April 2022. In case you are new to this, the tax will be paid by manufacturers and importers of plastic packaging (including plastic packaging filled on importation) that contains less than 30% recycled plastic and will be set at a rate of £200 per tonne.To ensure the tax does not disproportionately impact small businesses, those that manufacture or import less than 10 tonnes of plastic packaging each year will not need to register or pay the tax. All businesses above this threshold must register, including businesses who already include more than 30% recycled plastic in their packaging.
To support businesses, HMRC published ‘Get your business ready for the Plastic Packaging Tax’ guidance on GOV.UK, which provides an overview and further information on the tax. The ‘Further information for businesses’ part of the guidance has recently been updated to provide further detail on:
- The types of plastic packaging subject to the tax, including single-use products, such as carrier bags, sandwich bags and disposable cups.
- Who is liable for the tax and when it is charged, by clarifying what is considered ‘last substantial modification’.
- Delay on the requirement to include a statement with your invoice that the tax has been paid. This was due to commence in April 2022.
HMRC has also produced two ‘decision tree’ documents to provide a step-by-step guide to help business determine if plastic packaging is in scope of the tax, and who is required to account and potentially pay the tax:
- PPT – scope decision tree
- PPT – liability to register decision tree
Want to get involved in Research for Plastic Packaging Tax?
5th Oct 2021 - HMRC are looking to meet with people working in organisations who will assess liability for the Plastic Packaging Tax with a need to register for tax services, file returns and make payments. This is to get insight and test the service journey.
Once you have sent your contact details, over the next few weeks you may be contacted by HMRC research services team with further details on how to take part. The session will take no longer than 1 hour.