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Plastic Packaging Tax

A new Plastic Packaging Tax is to be introduced next year, administered by HMRC.  A brief summary is provided below:

  • Starts on 1 April 2022
  • £ 200 tax per metric tonne of packaging that is primarily plastic (plastic element of total packaging by weight) and the plastic contains less than 30% recycled plastic
  • Payable by:
    • importers of plastic packaging into the UK, whether packaging alone or filled with goods
    • manufacturers/producers of plastic packaging in the UK
  • Exemption for small producers or importers (10 tonnes plastic packaging per year)
  • Businesses will register with HMRC and submit returns to pay the tax
  • Likely to impact 20,000 producers and importers in UK
  • Likely to increase use of recycled plastic by 40%
  • Likely to save 200,000 tonnes of carbon in 2022 and 2023
  • Estimated revenue to be raised of £ 200 million per year

If you have any clients that you think may be affected please let them know or speak to Jeff Ruddell in the VAT team.