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What is the Plastic Packaging Tax?

• The tax will come into force on 1 April 2022 and will be charged at a rate of £200 per tonne
• It applies to manufacturers and importers of plastic packaging components which contain less than 30% recycled plastic.
• HMRC estimate it will impact 20,000 businesses

Check if you need to register for Plastic Packaging Tax

• If you manufacture or import 10 or more tonnes of plastic packaging within a 12 month period, you may need to register for the tax
• Review what packaging your business handles and where it comes from

 Peparing to register for Plastic Packaging Tax

• Check what classifies as plastic, recycled plastic and packaging components, and if the packaging you manufacture, or import is subject to the tax.
• You will be able to register from 1 April 2022 on a new HMRC Plastic Packaging Tax e-portal
• Take time to assess the impact...
  • from your suppliers
  • within your business
  • to your customers

How to work out the weight of packaging for Plastic Packaging Tax

For packaging components that you manufacture and import into the UK, you must know the:

1. Weight of packaging components and the total in kilograms
2. Percentage of recycled plastic content

Record keeping and accounts for Plastic Packaging Tax

Gather supporting information to prove your Plastic Packaging Tax return is correct:

• Your accounts must show how you’ve worked out the figures you submit on your return
• Your records must show the evidence to support these figures
• Keep records for 6 years from the end of the accounting period

 Claim a credit or defer paying Plastic Packaging Tax if the packaging is either:

1. Exported by you or someone else
2. converted into different packaging

 Consider your due diligence and joint and several liability

Due diligence is the appropriate and reasonable care a business takes when entering into relations or contracts with other businesses.

These checks help protect your business if any business you trade with either:

• avoids, or evades paying Plastic Packaging Tax
• does not comply with Plastic Packaging Tax requirements

 If you do not do these checks or keep sufficient records of them, you could be held jointly and severally liable (or secondarily liable) for any unpaid Plastic Packaging Tax.