HM Revenue & Customs

UK Plastic Packaging Tax

HM Revenue & Customs
HM Revenue & Customs

UK Plastic Packaging Tax

HM Revenue & Customs

In the UK 2020 budget, the Plastic Packaging tax was confirmed, and implementation is planned for April 2022. This tax will impact numerous producers using plastic packaging (either manufacturing or importing).

There is a Plastic Packaging Tax Consultation Document (published March 2020) which outlines what has been considered in terms of implementation and related requirements. We have compiled a short summary of the key points and proposals within this document regarding the scope and liable persons.

The second consultation on policy design to determine how this tax is going to be implemented ran in 2020 and the summary of responses and associated draft legislation has now been published by the HMRC;

Summary of Responses Link

Plastic Packaging tax draft legislation Link

Key features of the draft primary legislation include:

  • the £200 per tonne tax rate for packaging with less than 30% recycled plastic
  • the scope of the tax by definition of the type of taxable product and recycled content
  • who will be liable to pay the tax and need to register with HMRC
  • the exclusion for producers and importers of under 10 tonnes of plastic packaging per year
  • how the tax will be collected, recovered and enforced
  • how the tax will be relieved on exports

We have reviewed the released material and much has remained from the points highlighted from the initial consultation in our previous summary.

The information required for this tax reporting differs from the existing reporting within the annual packaging compliance reporting as it focuses exclusively on plastic and its recycled content which is not a characteristic currently captured within existing packaging reporting.

Greenstreets can provide Plastic Packaging Tax Assessment service enabling businesses to prepare for the tax by understanding whether they are obligated and if so how to register and what to report when the tax comes in. If this is something you will be interested in, please contact Greenstreets for further information.