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Plastic Packaging Tax update

06 JANUARY 2022

Received from HMRC 17 December 2021


To continue supporting preparations for the introduction of Plastic Packaging Tax (PPT) from April 2022, we are sharing the following updates.

PPT guidance: new information published

HMRC has published further updates to the main PPT guidance on GOV.UK. These updates include further information on:

  • Examples to aide understanding of what packaging is subject to the tax or not. This also reflects secondary legislation which has been refined to provide greater clarity on this aspect of the tax.
  • PPT statement on invoices – clarifying this requirement has been postponed for 1 April 2022
  • How VAT interacts with PPT
  • Examples of applying the 10 tonnes registration threshold, direct exports, claiming tax credits and calculating whether multi material packaging components are plastic 
  • Information on the records and accounts that businesses will be required to keep to support the information submitted on returns, including examples of the types of documents that can be used as evidence for the plastic and recycled plastic content of packaging.

We are listening to feedback from industry and these updates reflect where businesses have asked for more support, for example on understanding what plastic packaging is taxable. Further updates will be added to the guidance and we will communicate these as they become available.

PPT regulations update

Plastic Packaging Tax (Descriptions of Products) Regulations 2021

Earlier this year, HMRC ran a technical consultation on a draft version of The Plastic Packaging Tax (Descriptions of Products) Regulations 2021. These regulations remove three categories of products from the meaning of a plastic packaging component and add a further category of products. We are grateful to those who inputted on this. Following consultation feedback, we have refined some of the legislation wording, to provide greater clarity on what plastic packaging is subject to the tax. This updated legislation was laid in parliament on Monday 13 December. The updated legislation and Explanatory Memorandum are available online at https://www.legislation.gov.uk/uksi/2021/1417/contents/made.

The guidance on GOV.UK linked above has been updated to align with the latest legislation.

Plastic Packaging Tax (General) Regulations 2022The recent technical consultation on The Plastic Packaging Tax (General) Regulations 2022, which covers the tax’s administration technical details closed on 1 December 2021. Thank you to those who provided feedback on whether this legislation worked as intended, we are in the process of analysing the feedback received. Once finalised, the legislation will be laid before parliament in the new year.

All draft legislation for PPT has now been published and consulted on.

Webinar recordings

A reminder for those who may have been unable to attend the recent HMRC webinars on PPT, or would welcome seeing these again; recordings of both the ‘Introduction to Plastic Packaging Tax’ and ‘Plastic Packaging Tax – Administration and technical aspects’ sessions are available on GOV.UK at https://www.gov.uk/guidance/help-and-support-for-agents#plastic-packaging-tax.

Kind regards,

Eleanor Coyne

Excise & Environmental Taxes Policy Design Team | Indirect Tax | Customer Strategy & Tax Design | HM Revenue & Customs | indirecttaxdesign.team@hmrc.gov.uk

 

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