New Plastic packaging tax (‘PPT’)

A new tax on plastic packaging (‘PPT’) has been introduced in the UK with effect from 1 April 2022. The aim of the new tax is to encourage increased use of recycled material in plastic packaging.

The plastic packaging considered is both packaging manufactured in the UK and packaging imported into the UK.

The tax payment is due by the manufacturer/ importer and isn’t charged to customers like VAT, although prices can of course be increased to cover the cost.

There are a number of exclusions and exemptions as well as a threshold that apply and so the type of plastic packaging used as well as the quantity of plastic packaging used will be relevant for concluding on whether registration with HMRC and PPT payments are required.

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