A new Plastic Packaging Tax will take effect from 1 April 2022.
The plastic packaging tax will be introduced from 1 April next year and will affect businesses who manufacture and import more than 10 tonnes of plastic packaging. The tax will encourage the use of recycled plastic by taxing plastic packaging that contains less than 30% recycled content. You may be required to register and pay this tax on packaging that you manufacture or import.
The tax will apply to plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30% recycled. The rate of the tax will be £200 per metric tonne of plastic packaging.
If you are a business that manufactures or imports 10 or more tonnes of plastic packaging over a 12-month period you will need to register for the tax. This is regardless of whether you will have to pay any tax.
This includes importers of packaging which already contains goods, such as plastic bottles filled with drinks. Where the packaging you import already contains other goods, the tax only applies to the plastic packaging itself.
We are working with HMRC to develop a service that will help you identify the scope of the tax, collect evidence to demonstrate recycled content and then submit quarterly returns, reducing administration and cost to your business.