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.