Plastic Packaging Tax
Am I liable for the tax?
Recycled Plastic
Pre-consumer plastic
Post-consumer plastic
What is the status of the tax?
How much is the tax?
Where can I find the legislation?
What guidance and resources are available?
How do I get in contact with HMRC?
What still needs to be clarified?
(Last Updated: March 2023)
The British Plastics Federation (BPF) has released an online tool built upon knowledge provided by the consultancy firm EY that provides a quick and simple way for companies to ascertain whether or not their products qualify for the Plastic Packaging Tax. Companies can access the tool below or by clicking here
Recycled plastic is plastic that has been reprocessed from recovered material by using a chemical or manufacturing process. This is so it can be used either for its original purpose or for other purposes. This does not include organic recycling.
Recovered material is pre-consumer plastic or post-consumer plastic that both:
- is no longer suitable to be used in the process from which it was generated and would otherwise have been used for energy recovery (for example, by incineration) or disposed of as waste (for example, by being sent to landfill)
- has been collected and recovered for use as a material input for a recycling or manufacturing process, instead of new primary material
Pre-consumer plastic is plastic that’s recovered from waste generated in a manufacturing process and subsequently processed by a reprocessing facility.
It does not include scrap or regrind which can be reused in the process from which it was generated after only minimal reprocessing, for example shredding and grinding.
However, where waste material is recovered and requires reprocessing involving melting and extrusion into pellets at a reprocessing facility before it can be reused, it can be treated by manufacturers as recycled plastic for any process.
Post-consumer plastic is plastic that’s generated by the end user of the product. The product can then no longer be used for its intended purpose.
The consumers are:
- households
- commercial facilities
- industrial facilities
- institutional facilities
This includes returns of material from the distribution chain.
Please go to https://www.gov.uk/guidance/work-out-which-packaging-is-subject-to-plastic-packaging-tax#recycled-plastic for further information.
What is the status of the tax?
The tax came into force on 1 April 2022 and registered companies will need to submit returns four times a year to HMRC.
How much is the tax?
The tax of £210.82 will apply to all plastic packaging components with less than 30% recycled content. The rate, as set out in section 45 of the Finance Act 2021, will be amended from £200 per tonne to £210.82 per tonne, effective 1 April 2023.
Where can I find the legislation?
The primary legislation is in law and forms part 2 of the Finance Act 2021.
The secondary legislation can be found in The Plastic Packaging Tax (General) Regulation.
- Check what you need to do
- Work out if the packaging you manufacturer or import is subject to the tax
- Who should register for the tax and when
- How to register
- What to do after you’ve registered
Webinar recordings
The government website has recorded webinars on the ‘Introduction to Plastic Packaging Tax’ and ‘Plastic Packaging Tax – Administration and Technical Aspects’ sessions available on at https://www.gov.uk/guidance/help-and-support-for-agents#plastic-packaging-tax.
A February 2022 webinar presented by EY ‘A Guide to the Plastic Packaging Tax Final Preparation for Plastics Firms’ is available for members in the webinar archive. https://www.bpf.co.uk/events/webinars/archive/home.aspx.
HMRC presented a free webinar for BPF members on Tuesday 19 July 2022. https://www.youtube.com/watch?v=xonQzCZTKWA.
How do I get in contact with HMRC?
email: [email protected].
What still needs to be clarified?
- The details required to be submitted on the quarterly tax returns and PPT statement e.g., will the tax return contain individual details of all shipments of components and the recycled content in each?
- The certification/auditing requirements to verify recycled content and tax paid
- How and what requirements will ensure tax credits will be returned to manufacturers of plastic packaging components?
