PLASTIC PACKAGING TAX UPDATE

 

As announced at Spring Budget, the Plastic Packaging Tax (PPT) rate increased from £200 per tonne to £210.82 per tonne in line with the Consumer Price Index (CPI) from 1‌‌‌ ‌‌April 2023.  This change will maintain the real term value of the price incentive to use recycled plastic and supports the government’s environmental goals. 

The new rate applies to all plastic packaging manufactured or imported into the UK on or after 1‌‌‌ ‌‌April 2023. Any packaging that has been manufactured or imported prior to 1‌‌‌ ‌‌April 2023 will be charged at the previous rate of £200 per tonne. 
You can read further guidance here. 

The government is also bringing forward technical changes to PPT penalties via the Finance Bill. The changes will ensure that the tax operates as intended and that taxpayers are treated fairly and consistently. The changes will simplify the late payment penalty regime for PPT and applies to all late payments in relation to accounting periods from 1‌‌‌ ‌‌April 2023 onwards.

Statements on invoices  
HMRC remain committed to the importance of making clear where PPT has been charged to encourage greater use of recycled plastic. Where possible, we encourage businesses liable to PPT to provide information about the tax paid on invoices to business customers.  

However, we will no longer be introducing this as a legal requirement.    

Please visit the updated guidance for more detailed information, which also provide examples of other ways to make the tax visible to business customers.

We also encourage you to work with your business customers to try and increase, wherever possible, the amount of recycled plastic they use in their plastic packaging. 

Registration and returns 
If you manufacture or import 10 or more tonnes of plastic packaging within a 12-month period you must register for PPT on GOV.UK, even if your packaging contains 30% or more recycled plastic.     

PPT also applies to plastic packaging that is imported and already filled with goods – but you only need to account for the weight of the plastic packaging towards the 10-tonne threshold.  

If you’re liable to register or have already registered, from 1‌‌‌ ‌‌April 2023 you must submit your PPT return and pay any tax due by 28‌‌‌ ‌‌April 2023.

Guidance enhancements
Guidance for PPT is available on our collection page. We continue to enhance the PPT guidance pages to help address your frequently asked questions. 

HMRC has produced the following resources to support businesses.

Guidance
Visit the collection page for the latest guidance, including:
• updates to the importers’ guidance on the Temporary Admission procedure for reusable packaging not intended for sale
• examples of packaging in and out of scope of PPT

Step by step guides
Read to learn about what is in scope, who is liable and needs to register:

• check if you need to register and are liable for PPT
• check if your plastic packaging is in scope of the PPT Flyer