Introduction of Plastic Packaging Tax from April 2022

What is it all about?

The government will be introducing a plastic packaging tax from 1 April 2022. This will apply to all plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic.

There will be an exemption for manufacturers and importers of less than 10 tonnes of plastic per year.

What is the purpose behind it?

The tax will provide a clear economic incentive for businesses to use recycled material in plastic packaging. This should see an increase in recycling of plastic waste diverting it away from landfill or incineration.

What will the changes mean?

From April 2022, liable businesses will need to submit the following data to HMRC each quarter:

• the tonnage of liable packaging manufactured or imported
• information around any exempt packaging
• evidence of where the recycled content exceeds 30%.

The business must then also pay the £200 per tonne applicable to liable packaging they have imported or manufactured.

What are the costs for liable businesses?

There are likely to be a few one-off costs including familiarisation with the new rules, training for staff, registration with HMRC, and developing the required reporting framework to complete tax returns.

Continuing costs may also include completing, filing and paying tax returns, keeping appropriate records and amending returns.

Please contact us if you would like any more information, advice, or support regarding this tax. We will be happy to assist you.