UK Plastic Packaging Tax

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Frequently Asked Questions

What is Plastic Packaging Tax?

The UK’s new Plastic Packaging Taxes (PPT) could affect your
e-commerce business if you are established in or importing goods into the UK from 1st April 2022.

Following on from the launches of new EPR legislation in France and Germany, HMRC has recently announced the implementation a new indirect tax from the 1st April 2022, the Plastic Packaging Tax, or PPT. AVASK have a team of dedicated tax experts who can ensure you are remaining complaint when importing your goods into the UK.

PPT will apply to any plastic packaging manufactured in, or imported into the UK, which does not contain at least 30% recycled plastic. However, if you are a manufacturer and/or importer who produces less than 10 tonnes of plastic packaging within a 12-month period, this will not apply to you.

The UK implemented the Plastic Packaging Tax from the 1st April 2022

Frequently Asked Questions (FAQs)

What do you need to know about Plastic Packaging Tax (PPT)?

A PPT charge will arise when a chargeable plastic packaging component is produced in the UK by a business or where it is imported into the UK by a business. The tax only applies to ‘finished’ products, and this will likely vary from product to product.

However, you need to bear in mind that each ‘finished’ product is individually chargeable.

This new taxation is complex and will therefore require you to take immediate action to ensure that your e-commerce business remains fully compliant once these new changes have been implemented. PPT will be chargeable at £200 a tonne.

  • 30% of plastic packaging manufactured or imported is recycled
  • Plastic manufactured is exported to another country
  • Used for the immediate packaging of licensed human medicine
  • Permanently recorded as set aside for non-packaging use
  • Used as transport packaging to import multiple goods safely into the UK or used in aircraft, ship and rail goods stores (Pallet wrap, plastic pallets)
How do I register for PPT?

Manufacturers or importers of plastic packaging are required to register for PPT if any of the following applies to them:

If, at any time after 1st April 2022, your business expects to import or manufacture at least 10 tonnes of plastic packaging in the following 30 days. The registration must occur within 30 days of the first day this condition is met.

Your business has manufactured or imported at least 10 tonnes of plastic packaging within a 12-month period ending on the last day of the calendar month. In this instance, your business will be liable for PPT from the first day of the next month and must register before the first day of the subsequent month.

During the first year of PPT, a business need only to register for the tax when the amount of plastic packaging exceeds 10 tonnes in a 12-month period from 1st April 2022.

If your business meets either of these requirements, even if your packaging is exempt from charges, you must still register for PPT. However, it is important to note that no registrations can be made until the official launch of the PPT on 1st, April 2022.

PPT returns will need to submitted quarterly. The PPT returns and resulting payments to HMRC will be due by no later than the last working day of the month following period end.

PPT in the UK is currently separate from EPR requirements that have been introduced in Germany and France – the UK is on track to introduce EPR from 2024.

If you are looking for help and support with EPR regulations, contact AVASK

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