Get ready for the Plastic Packaging Tax: Steps to take

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.

  • Plastic Packaging Tax guidance is subject to change until all the legislation is approved by Parliament. It will continue to be updated.
  • The tax will come into force on 1 April 2022 and will be charged at a rate of £200 per tonne.

You need to register for the Plastic Packaging Tax if you’ve manufactured or imported 10 or more tonnes of finished plastic packaging components within the last 12 months, or will do so in the next 30 days. From 1 April 2022 to 30 March 2023, the 12 months threshold will be worked out differently.

Plastic Packaging Tax only applies to manufacturers and importers of 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.

Steps to take when deciding if you should pay the tax

  1. Work out which packaging is subject to Plastic Packaging Tax.
  2. Decide if you need to register for the tax.
  3. Work out the weight of the packaging you manufacture or import.
  4. Check when you must register for the tax.
  5. Find out how to register.
  6. Check which records and accounts you must keep and how to carry out due diligence.
  7. Read how to claim a credit or defer paying Plastic Packaging Tax (if applicable).
  8. Find out how to complete your return.

For more information or to discuss how we can help you effectively structure your finances for tax and save you money, contact your usual Beavis Morgan Partner.

Our experts at Beavis Morgan take the hassle of dealing with HMRC away from you, so you don’t need to deal directly with them. We are also able to advise on all aspects of tax whether compliance or planning.