7 February 2022

Plastic Packaging Tax (PPT) - BPIF at the forefront of supporting the industry

The UK Government will introduce a new Plastic Packaging Tax (PPT) on the 1^st April 2022.  After this time tax at the rate of £200 per tonne will have to be paid on any plastic packaging that falls within the tax rules. The tax applies when the plastic packaging component does not contain a minimum of 30% recycled content.

If you manufacture or import packaging, you will need to take steps to establish your status within the tax. Companies that manufacture or import more than 10 tonnes of plastic in 12 months will have to register and keep additional records to calculate and pay the tax if they are the company performing the last substantial modification before filling, packing and labelling. As printing has been designated as a 'substantial modification' many packaging producers will undertake the last substantial modification and be required to pay the tax.

In 2021 the BPIF has been lobbying the new legislation by actively engaging in discussions with HMRC and responding to the consultations. Even though we are still awaiting further clarification from HMRC, having an understanding and awareness of PPT is key to ensuring that your business can be proactive when it comes to complying with the PPT regulations.

The upcoming legislation will increase pressure on business operations, administrative processes, and impact costs. 

At the BPIF, we are working to source best practice solutions and to support our industry in understanding and implementing the upcoming legislation, especially how the legislation will impact specific industry sectors. We will be providing updates from HMRC and delivering roundtables where members can discuss their concerns and get their questions answered.

To help BPIF members and the industry pre implementation date there will be frequent HMRC updates, a HMRC webinar, PPT roundtables. Post implementation there will be a PPT webinar series put in place to provide companies will with step-by-step guidance on the legislation. The PPT activity will be shared on the hub webpage on the Environmental Road Map.

Plastic Packaging Tax Hub: www.britishprint.com/membership-services/environment/enviroroadmap/plastic-packaging-tax/

To ensure BPIF members and the industry are provided with the fullest support required a PPT helpdesk email account has been created. For companies to share their questions or queries, our internal experts will be available to provide an answer or we will engage with HMRC for more information on your behalf.

Plastic Packaging Tax Helpdesk: [email protected]

We want to hear from you! Please help us support the industry by engaging in our PPT survey, sharing insight on what you know about the legislation, have you been communicating with HMRC and more. Go to www.surveymonkey.co.uk/r/86P76XL to complete the survey.

To get started on understanding the legislation:

8 Steps recommended by HMRC

1. Work out which packaging is subject to Plastic Packaging Tax.
2. Decide if you need to register for the tax.
3. Work out the weight of the packaging you manufacture or import.
4. Check when you must register for the tax.
5. Find out how to register.
6. Check which records and accounts you must keep and how to carry out due diligence.
7. Read how to claim a credit or defer paying Plastic Packaging Tax (if applicable).
8. Find out how to complete your return.

Go to www.gov.uk/government/collections/plastic-packaging-tax to access further information on the 8 steps above.

Please click below to read the full Press Release.