United Kingdom – Plastic Packaging Tax 2022

The tax will apply to businesses where plastic packaging, produced in or imported into the UK, does not contain at least 30 per cent recycled plastic. Plastic packaging is packaging that is mostly plastic by weight. 

The tax will not apply to any plastic packaging which contains 30 per cent or more recycled plastic, or any packaging which is not mainly plastic by weight. Imported plastic packaging will be accountable to the tax, whether the packaging is unfilled or filled. 

 

The purpose of the new tax policy is to encourage businesses to use recycled material in the production of plastic packaging. It is speculated that this will create a greater demand for this material and in turn stimulate increased levels of recycling and collection of plastic waste.

 

This measure is expected to impact on up to an estimated 20,000 producers and importers of plastic packaging. As well as the liability tax, on-going costs could include completing, paying and filing tax returns, keeping appropriate records (including those required to claim the export credit), and amending returns. There will also be new registrations and de-registrations each year. HMRC will develop clear guidance and other tools to help businesses understand and meet their obligations.

 

There are a number of exemptions suggested for small businesses or medical products. If you would like to discuss this further, or you believe the measure could affect you, please feel free to get in touch with us. 

Although expected to commence from April 2022 there is currently no UK Tax legislation in place.

We will endeavour to keep you informed as new information develops.