Plastic Packaging Tax

HMRC announced a new tax which came into effect on the 01 April 2022 called ‘Plastic Packaging Tax’

If you have manufactured or imported 10 or more tonnes of plastic packaging since 1 April 2022, you may need to register for Plastic Packaging Tax

You will need to register if you:

• Expect to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days
• Have imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022 — this will change on 31 March 2023, when you will need to look back over the last 12 months on the last day of the month.

You will need to pay Plastic Packaging Tax which is charged at a rate of £200 per tonne if you have manufactured or imported plastic packaging components which contain less than 30% recycled plastic.

Packaging should only contain recycled plastic where it is permitted under other regulations and food safety standards.

Next steps:

• You will need to check which packaging is subject to Plastic Packaging Tax and the definitions of finished components and substantial modifications this is to find out if the packaging you manufacture or import is subject to the tax.

• You will need to then work out the weight of the packaging you manufacture or import to find out if you must register for the tax.

• Check which records and accounts you must keep and how to carry out due diligence.

• Find out if you can get tax relief on exported and converted components.

• Find out how to submit your return.

When to submit your return

Once you have met the 10-tonne threshold and registered your liability for Plastic Packaging Tax you’ll need to submit a return to HMRC 4 times a year.

Your returns must cover an accounting period. The accounting periods are:

• 1 April to 30 June
• 1 July to 30 September
• 1 October to 31 December
• 1 January to 31 March

You must submit the return and pay any tax due no later than the last working day of the month following the end of the accounting period you are reporting.

For example, your return for the accounting period 1 April 2022 to 30 June 2022 must be submitted to HMRC on or before Friday 29 July 2022.

What to include on your return

You must give all weights in kilograms and round them down to the nearest kilogram on your return.

To complete your return, you will need to know and report the total weights of any finished plastic packaging components that:

• you manufactured in the UK in the accounting period
• you imported into the UK in the accounting period
• you exported in the accounting period, or you intend to export in the next 12 months
• you manufactured or imported for use in the immediate packaging of licenced human medicines in the accounting period that were not and will not be exported
• contain at least 30% recycled plastic content that you manufactured or imported in the accounting period that will not be exported
• you have paid tax on in a previous accounting period, that you or another business has later converted or exported