Businesses which have manufactured or imported ten or more tonnes of plastic packaging since 1 April 2022 may need to register for the tax.
Businesses need to register for the Plastic Packaging Tax if they:
- expect to import into the UK or manufacture in the UK ten tonnes or more of finished plastic packaging components in the next 30 days; and
- have imported into the UK or manufactured in the UK ten tonnes or more of finished plastic packaging components since 1 April 2022.
From 31 March 2023, businesses will need to look back over the last 12 months on the last day of the month.
Businesses will need to pay Plastic Packaging Tax if they have manufactured or imported 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.
The Plastic Packaging Tax came into force on 1 April 2022 and is charged at a rate of £200 per tonne. The purpose of the tax is to provide a financial incentive to encourage businesses to use recycled plastics in their manufacturing. It is one of a number of environmental taxations designed to help improve sustainability and reduce the carbon footprint of the UK.
HMRC have produced guidance to help businesses decide if they need to pay the tax.