If you manufacture or import 10 or more tonnes of plastic packaging within a 12 month period, you may need to register for plastic packaging tax.

What is the plastic packaging tax?

On 1 April 2022, the UK government enforced a tax applicable to some plastic packaging manufacturing and imports (or packaging for which plastic is the main component).  The goal of the tax is to incentivise the use of recycled material in the production of plastic manufacturing.

The plastic packaging tax will apply to any plastic packaging that is produced in or imported into the UK and does not contain at least 30 per cent recycled plastic.  For the purposes of the new tax, “plastic packaging” is defined as packaging that is predominantly (i.e. more than 50 per cent) plastic by weight.

Will it affect my business?

For smaller businesses, there’s a threshold of 10 tonnes a year. So, if you manufacture or import packaging under this weight (or manufacture it) across a 12 month rolling period, the tax won’t apply.

However, plastic packaging is used in a variety of sectors so the tax is still expected to have a broad impact.  Businesses which are likely to fall under the tax’s net include:

• Manufacturers – manufacturing or importing plastic components
• Retailers – importing products such as bin liners, sandwich bags, and carrier bags
• Fresh food producers – importing plastic packaging to seal their products
• Transport providers – importing items such as bubble wrap or pallet wrap for transport

How we can help?

Our Tax team can help you to understand the new tax and how it will affect your business.  Get in touch today on 01788 539000 or 0116 261 0061, or email [email protected].