Plastic Packaging Tax: Is Your Business Prepared?

The government will introduce a tax on plastic packaging which does not meet a minimum threshold of at least 30 per cent recycled content from April 2022, in a bid to encourage greater use of recycled plastic.

The UK government confirmed its plans to introduce the Plastic Packaging Tax in March 2020, following stakeholder responses to the previous consultation in 2019. With details due to be confirmed by the government next month, now is the time to prepare for the impact on your business.

The new Plastic Packaging Tax will be introduced from April 2022 and will affect a wide range of industries, including retail, construction and manufacturing. The current proposal suggests a £200 per tonne levy on plastic packaging placed onto the UK market with less than 30% recycled content. 

Affected businesses will need to collect data for quarterly returns, declaring whether the recycled content percentage of their packaging is 30% or above. Such declarations will need to be accurate statements based on evidence from the supply chain.

HMRC conducted a consultation for businesses affected by the tax earlier this year to get feedback on the scope, as well as the de minis threshold, liability, evidence and enforcement. Final details on the design of the tax will be revealed in November 2020.

Jimmy Dorrell, head of sustainable business at Clarity, said “We welcome the government’s agenda to tackle problematic plastic waste by increasing the incentives for purchasing packaging with recycled content.

“It is clear that the Plastic Packaging Tax could result in a significant increase in costs for some manufacturers and importers, however, and it is vital that businesses start preparing immediately to limit the impact on their business. With Brexit, the global pandemic and packaging regulation reforms also affecting these businesses, it is vital that they are supported through the changes ahead.

“With the mechanics of the tax due within weeks, we will be there to support our own packaging compliance members, as well as other businesses looking for guidance on the impacts of the plastics tax on their operations and costs.”

Get help: Join our webinar

We are holding a webinar to help answer some of the questions you may have on the Plastic Packaging Tax and how it will affect your business. Join Jimmy Dorrell, Head of Sustainable Business, and Charlotte Briggs, Policy and Engagement Lead on Wednesday 25th November 2020 at 11am.

We will cover:

• What is the Plastic Packaging Tax, who will be obligated and when?
• How much will the Plastic Packaging Tax cost your business?
• Which materials will fall under the remit?
• Data and supply chain accreditation
• How will exports be affected?
• Transport packaging
• Data collection and reporting
• Mitigation and avoidance. 

Plastic Packaging Tax

More information on the tax can be found in the Plastic Packaging Tax section on our website.