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Plastic Packaging Tax

Update from HMRC - 4th November 2021

With less than 6 months to go until Plastic Packaging Tax (PPT) comes into force from 1 April 2022, we are providing the below updates to help you continue preparing for the tax’s introduction. We are also sharing recent technical announcements relating to the tax.

Guidance: first part of full guidance now available
HMRC has published the first part of PPT’s full guidance on GOV.UK. This update provides new information, for example what to include on a tax return for PPT, and what other substances need to be considered for multi material packaging. The update also brings previously published guidance into the full guidance format, so all information businesses need to prepare for the tax will be together in one place.

Further additions to the full guidance will be published in stages later this year, and we will communicate these with you as they become available.

Webinars – dates still available and recordings
The first HMRC webinars on PPT took place late last month. Recordings of both the ‘Introduction to Plastic Packaging Tax’ and ‘Plastic Packaging Tax – Administration and technical aspects’ sessions are now available to view on GOV.UK at https://www.gov.uk/guidance/help-and-support-for-agents#plastic-packaging-tax.

Due to popular demand, we added further dates for both webinars. Some spaces remain available, so sign-up now to learn more about what you need to do before the tax comes into force from 1 April 2022. HMRC’s webinars also give you the opportunity to ask any questions you may have regarding the administration of the tax.

Get Ready for Plastic Packaging Tax – Introduction to PPT Webinar: additional date added for 22nd November at 13:45 GMT. This webinar will cover how the tax will operate. Topics will include:

  • what plastic packaging the tax applies to
  • who is responsible for paying and accounting
  • tax returns (reporting) and record keeping.

Sign-up now by visiting https://register.gotowebinar.com/rt/1050128580687287821?source=Gov

Get Ready for Plastic Packaging Tax – Administration and technical aspects Webinar: spaces still available for 12th November at 11:45 GMT. This webinar will cover the technical points about recycled plastic and exemptions from the tax. Topics will include:

  • exports and tax credits
  • supply chain responsibilities
  • types of recycling, calculating
  • evidencing weight of packaging
  • evidence for exemptions.

Sign-up now by visiting https://register.gotowebinar.com/rt/5605188650921164814?source=Gov

PPT further secondary legislation for technical consultation
Building on the secondary legislation published in draft earlier this year, we are now sharing further draft secondary legislation for technical consultation. The legislation published today provides the technical detail relating to administration of the tax, such as registration requirements, filing returns, record keeping and evidence.

The technical consultation on the further draft secondary legislation is available on GOV.UK  and consists of the following documents:

  • The Plastic Packaging Tax (General) Regulations 2022 draft Statutory Instrument
  • Draft explanatory memorandum on the Plastic Packaging Tax (General) Regulations 2022

The government welcomes feedback on whether the legislation works as intended. The technical consultation runs from 4 November to 11:45pm on 1 December 2021. Please provide any comments to indirecttaxdesign.team@hmrc.gov.uk.

Autumn Budget 2021

Last week’s Budget included a measure for Plastic Packaging Tax. The measure introduces minor technical changes to the Plastic Packaging Tax primary legislation contained within Part 2, Schedule 9 and Schedule 13 of Finance Act 2021. The changes are to ensure that the tax operates as intended, that the UK complies with international agreements, and that HMRC has the appropriate framework to administer the tax.

 

You can read more about this technical change in the updated Tax Information and Impact Note (TIIN) on GOV.UK.


Updated Plastic Packaging Tax guidance - published 24 Sept 2021

To tackle the pressing global issue of plastic pollution, the government is committed to introducing a world leading tax on plastic packaging from April 2022.  The Plastic Packaging Tax will create a clear economic incentive for businesses to use recycled plastic material in the production of plastic packaging, in turn stimulating increased levels of recycling and collection of plastic waste and diverting it away from landfill or incineration. 

The tax will be paid by manufacturers and importers of plastic packaging (including plastic packaging filled on importation) that contains less than 30% recycled plastic and will be set at a rate of £200 per tonne.

To ensure the tax does not disproportionately impact small businesses, those that manufacture or import less than 10 tonnes of plastic packaging each year will not need to register or pay the tax. All businesses above this threshold must register, including businesses who already include more than 30% recycled plastic in their packaging.

To support businesses, HMRC published ‘Get your business ready for the Plastic Packaging Tax’ guidance on GOV.UK, which provides an overview and further information on the tax. The ‘Further information for businesses’ part of the guidance has recently been updated to provide further detail on:

  • The types of plastic packaging subject to the tax, including single-use products, such as carrier bags, sandwich bags and disposable cups.
  • Who is liable for the tax and when it is charged, by clarifying what is considered ‘last substantial modification’.

HMRC has also produced two ‘decision tree’ documents to provide a step-by-step guide to help business determine if plastic packaging is in scope of the tax, and who is required to account and potentially pay the tax. The decision trees are attached to this email.

Queries?

More detailed guidance and support to businesses will be provided in the coming months. Any queries on the tax should be directed to HMRC, using the contact details in the guidance

Presentations

HMRC Introduction to the PPT 20 Oct 2021

HMRC Administration and Technical 26 Oct 2021

Guidance Documents

Liability to register guide

Scope decision tree guide

Plastic Packaging Tax Regulatory Amendments (27 Oct)


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