How the new Plastic Packaging Tax may affect you

The Finance Bill 2021 has been published this month and includes more information on the Plastic Packaging Tax, which is expected to be introduced from 1st April 2022. Here’s what we know so far.  

bottles 1167917_1280The tax is likely to directly impact those who manufacture and import plastic packaging in the UK with a recycled content less than 30% at £200 per tonne.

It is expected to apply to the import of plastic packaging, which is both filled and unfilled, meaning that it may apply where items are purchased in plastic packaging too.

However, it is expected there will be an exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.

If you are obligated to pay the tax, you will have to register with HMRC.

As this all currently sits in draft legislation, it is still unconfirmed and won’t be set in stone until the Bill becomes law as the Finance Act 2021. Look out for further updates on this in the coming months.

In the meantime more information can be found in the policy paper here.

Things to ask when considering if your business may be obligated? 

  • Do we manufacture plastic packaging with a recycled content less than 30%?
  • Do we import unfilled packaging with a recycled content less than 30%?
  • Do we import items in plastic packaging with a recycled content less than 30%?

If you answered yes to any of the above, does this equal over 10 tonnes a year of plastic packaging? If yes, you may be obligated from April 2022.

Though you don’t have any duties at this stage, you may want to consider the impact that this new tax may have on your business, and if any changes could be made to the packaging you make or import to avoid the tax. For example, could you reduce the amounts you use? Or increase the recycled content to over 30%?

If you subscribe to our Legislation Update Service, remember to look at your monthly newsletter for further updates.