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Is your business ready for the new Plastic Packaging Tax?

From 1 April 2022, Plastic Packaging Tax (PPT) will be introduced in the UK. The UK Government is introducing this new tax to encourage the use of recycled rather than new plastic within plastic packaging.

What is covered under PPT?

PPT will apply to finished plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30% recycled. It will include:

  • Plastic drinks bottles
  • Ready meal trays
  • Bubble wrap
  • Sticky tape
  • Re-usable plastic boxes
  • Sandwich bags
  • Bin bags

Where goods are imported, this includes filled packaging such as drinks bottles and ready meal trays. The tax will be calculated at £200 per metric tonne of plastic packaging.

Who must register and account for PPT?

At any time after 1 April 2022 you must register for PPT if your business meets either of the following conditions:

  1. The manufacturer import of finished plastic packaging is expected to reach 10 tonnes or more in the following 30 days — you must register within 30 days of the first day that this condition is met.
  2. You have manufactured or imported 10 tonnes or more of finished plastic packaging in a 12 month period ending on the last day of a calendar month (e.g. December) — The company becomes liable for PPT from the first day of the month and must register within 30 days.

For the second condition, there is a special arrangement on introduction of PPT so that a business only needs to register for the tax when the amount of plastic packaging is 10 tonnes or more in a 12 month period from 1 April 2022.