HMRC has issued further detailed guidance on the UK Plastic Packaging Tax (PPT), which will be introduced in April 2022.
The introduction of the plastic packaging tax is designed to encourage the use of recycled rather than new plastic within plastic packaging, and will increase levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.
The tax will be paid on plastic packaging that does not contain 30% recycled content at £200 per tonne. It has been estimated that this will raise nearly a billion pounds in tax by 2025. The tax will apply to plastic packaging manufactured or imported into the UK (over 10 tonnes), with some exemptions including transport packaging on imported goods and plastic packaging for medicines.
If you place more than 10 tonnes of plastic packaging on the UK market you will need to register, even if your packaging is exempt through recycled content.
All businesses that may be subject to the plastic packaging tax, especially if on the threshold of the 10 tonne de minimus, should keep records to demonstrate to HMRC that it does not need to register or that its plastic packaging is exempt.
This should include:
– Weights and materials used to manufacture the packaging.
– Data and calculation for recycled content.
– Amount, in weight, of plastic packaging exported.
– Documents to keep as a record:
– Product specification.
– Production certificates and certificates of conformity.
– Business accounting systems.
– Accreditations and international standards.
– Quality assurance audits.
– Sales and purchase invoices.
– Invoice changes
If you are responsible for accounting for the tax as the manufacturer or importer of plastic packaging, any invoice you issue to a business customer must show a statement that Plastic Packaging Tax has been paid on the packaging concerned.