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.