HMRC has published a policy paper detailing how businesses should prepare for the impending plastic packaging tax.
The new tax, which is to take effect from 1 April 2022, will seek to encourage the use of recycled plastic within packaging. Plastic packaging manufactured in, or imported into, the UK containing less than 30% recycled plastic will be subject to the tax, which will stand at £200 per metric tonne of plastic packaging.
HMRC said that the move will stimulate increased levels of recycling and collection of plastic waste, thus diverting it away from landfill or incineration.
The policy paper reads, “If you are a business that manufactures or imports 10 or more tonnes of plastic packaging over a 12-month period you will need to register for the tax. This is regardless of whether you will have to pay any tax. This includes importers of packaging which already contains goods, such as plastic bottles filled with drinks. Where the packaging you import already contains other goods, the tax only applies to the plastic packaging itself.
“If you are a business that needs to register for the tax, you will need to pay Plastic Packaging Tax on any packaging that contains less than 30% recycled plastic. The tax will be charged at £200 per tonne. For example, if you manufacture 10 tonnes of plastic packaging, and 1 tonne contains less than 30% recycled plastic, you will need to pay £200.
“The online service to register and pay will be available on 1 April 2022 when the tax takes effect.”
Find more information about registering for plastic packaging tax or access the full policy paper by clicking here.
