Plastic Packaging Tax update - April 2023

12 Apr 2023

HM Revenue & Customs issued guidance on 11 April 2023, reminding businesses that they may be required to register for the purposes of the UK plastic packaging tax (PPT), and that the tax rate will increase from GBP 200 per tonne to GBP 210 on 1 April 2023, The PPT took effect on April 1, 2022. 

If a business imports or manufactures plastic packaging parts that contain less than 30% recycled plastic, they are required to pay the PPT. 

Registration is required under the following conditions: 

• Expects to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days; or
• Has imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022. Starting on 31 March 2023, businesses needed to look back over the past 12 months on the last day of each month and register if the threshold is exceeded.

If you’re liable to register or have already registered, from 1‌‌‌ ‌‌April 2023 you must submit your PPT return and pay any tax due by 28‌‌‌ ‌‌April 2023.

The government is also bringing forward technical changes to PPT penalties via the Finance Bill. The changes will ensure that the tax operates as intended and that taxpayers are treated fairly and consistently. The changes will simplify the late payment penalty regime for PPT and applies to all late payments in relation to accounting periods from 1‌‌‌ ‌‌April 2023 onwards.

For Impact on business including civil society organisations from Plastic Packaging Tax have previously been published and can be found here. The measure is expected to have a negligible impact on the registered population of manufacturers and importers of plastic packaging. One-off costs will include familiarisation with the rate increase. There are not expected to be any continuing costs.

This measure is expected overall to have no impact on the business experience of dealing with HMRC as the change is the expected annual uprating of Plastic Packaging Tax and doesn’t change any processes or tax administration obligations.

This measure is not expected to have any impact on civil society organisations.

You Can Read Here for Further Information on Plastic Packaging Tax

Further information on the Plastic Tax

We'd also like to hear from our members who are having problems with their plastic packaging, so please click here to contact us.

Source: HMRC