Plastic Packaging Tax updates

This information is for PAGB members only and is not to be reproduced, repeated or circulated without PAGB’s permission.

Plastic Packaging Tax – Check if you need to register | Live webinars on 25 & 27 April | Guidance updates

 The new Plastic Packaging Tax (PPT) came into force on 1 April 2022. If you manufacture or import plastic packaging you must check if you are liable for PPT. You have 30 days to register for the tax from the date you become liable.This update provides the latest information from HMRC on the PPT.Useful information for April:

• Nobody will need to file a PPT return or pay the tax before July 2022 at the earliest, however you may need to register before this point.
• PPT has a 10-tonne registration threshold and there are two tests to check if you need to register. You must register for PPT on GOV.UK if you have manufactured on imported 10 or more tonnes of plastic packaging since 1 April 2022 or if you expect to manufacture or import 10 or more tonnes in the next 30 days. Guidance gives further information on what plastic packaging you must include against the 10 tonne threshold.
• Worked examples of passing both threshold tests are on GOV.UK at Examples of tests and calculations for Plastic Packaging Tax.
• Plastic packaging containing less than 30% recycled plastic is taxed at £200 per tonne. If you are over the registration threshold and already include 30% or more recycled plastic material in your plastic packaging, you still need to register but will not pay any tax.
• If you import plastic packaging, you need to check who is responsible for complying with and paying PPT. This is unlikely to be your overseas suppliers.
• Once you become liable for PPT, you will need to keep accounts and records to use as evidence when you complete your quarterly tax returns for PPT.

PPT webinars: April sessions

HMRC is hosting a further round of PPT webinars later this month. These cover the same content as previous webinars but provide the opportunity to put your questions direct to HMRC.

• Introduction to Plastic Packaging Tax: 25 April – 15:45 – 16:45 BST
• Administrative and technical aspects: 27 April – 13:45 – 14:45 BST

Sign up to the April webinar sessions now or watch recordings of previous sessions via GOV.UK. Webinar recordings include timestamps so you can go straight to your area of interest.

Reminder: PPT scope and accounting liability step by step guides

A reminder that two step by step documents are available to assist businesses in understanding the tax and what plastic packaging products are in scope. These now provide additional clarity for importers of plastic packaging:

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

You can save the step by step guides by clicking on the full screen icon, and then click on the download icon in the top-right of the screen. Alternatively, you can request a copy by email at indirecttaxdesign.team@hmrc.gov.uk.

Guidance enhancements

Guidance for PPT is available on HMRC’s collection page. Recent updates include:

• The registration and group of companies registration guidance pages have been amended to include links to the start page of the IT service
• The PPT Force of Law guidance is now available. This provides the necessary legislative provision for the detailed administrative arrangements of the tax that have already been set out in guidance elsewhere, such as standard weighing methods.
• The recycled plastic and reprocessing guidance has been amended to make it clear that pre-consumer plastic can be included as recycled material where it needs to be reprocessed in order to be used.
• The link for businesses to make complex enquiries to HMRC where the answer isn’t covered in the guidance has been added to the Plastic Packaging Tax collection page and Plastic Packaging Tax: steps to take

Donna CastleExecutive Director of Policy and Communicationsdonna.castle@pagb.co.uk

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