Plastic Packaging Tax

Published 24th Mar 2022 by MY Export Hub

Plastic Packaging Tax Warning for Importers.

HM Revenue & Customs (HMRC) has issued a reminder that, on 1 April 2022, the UK Government will introduce the Plastic Packaging Tax (PPT) and advised all manufactures or importers of plastic packaging to check if they are liable for the tax.

The relevant guidance from HMRC can be found Here

“Nobody will need to file a PPT return or pay the tax until July 2022 at the earliest,” HMRC points out. “However you may need to register before this point.”

PPT will incentivise businesses to use recycled plastic in the production of plastic packaging. Manufacturing or importing 10 tonnes or more of plastic packaging containing less than 30% recycled plastic will be taxed at £200 per tonne.

Businesses over the registration threshold who already include recycled plastic in their packaging will still need to register but will not pay any tax.

Anyone who imports plastic packaging needs to check who is responsible for complying with and paying PPT. This is unlikely to be the suppliers.

For example, where a UK based retailer imports goods from a German food manufacturer, the retailer is the consignee and in control of the import, so are the businesses who will need to register for the tax where they pass the 10-tonne registration threshold.

If businesses import finished plastic packaging components using Incoterms, they will need to agree with the other business about who is responsible for including the details on their PPT return and paying the tax.

“If you are still unsure whether any particular plastic packaging items are in scope of PPT, HMRC can provide a view,” the warning notice said. “However, we would require information on what the product is designed to be suitable for and information about how the product is used.”

Questions can be put to HMRC via indirecttaxdesign.team@hmrc.gov.uk and, where possible, photos and links to websites where the product is bought or sold should be included to help with a quick and informed decision.

Please read the attachment and take appropriate action, as in many cases the tax will not apply.

However, for shipments within the UK, the tax will apply, and those companies dealing with imports and exports, and domestic shipments, will need to keep records concerning each type of shipment.

Plastic Packaging Tax


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