The Plastic Packaging Tax (PPT)

23 Oct 2021

What is the Plastic Tax?

The Plastic Packaging Tax is a tax on plastic packaging manufactured in, or imported into the UK, where the plastic used in its manufacture contains less than 30% recycled plastic. Where 30% or more recycled plastic is used, no tax will be due, but the plastic packaging will still need to be accounted for.

The tax will came into effect 1 April 2022. The rate of tax is currently £200 per metric tonne of plastic packaging.

It does not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.

The tax is aimed at creating demand for increased recycled content and minimising unnecessary plastic usage with potential to divert plastics from landfill or incineration, and drive recycling technologies within the UK.

Am I liable to pay the tax for the packaging we buy from Roberts Mart?

Indirectly yes, where it applies the charge will be £200 per tonne on each delivery where the tax comes into force. If your film or bags contains 30% or more recycled plastic content then the tax will not apply.

What type of recycled material can be included?

Recycled Plastic is plastic that has been reprocessed from recovered material by means of a chemical or manufacturing process, other than organic recycling, so that it can be used either for its original purpose or for other purposes.

“Pre-consumer plastic” is plastic that is—

(a) recovered from waste generated in a manufacturing process, and

(b)processed by a reprocessing facility,

(c) but does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.

“Post-consumer plastic” is plastic—

(a )that is generated by households or by commercial, industrial or institutional facilities in their role as end-users of the product, and

(b) that can no longer be used for its intended purpose.

“Recovered material” is pre-consumer plastic or post-consumer plastic that—

(a) has been collected and recovered as a material input, in lieu of new primary material, for a recycling or a manufacturing process, and

(b) would otherwise have been disposed of as waste or used for energy recovery.

Do we need to register for the tax?

You must register for Plastic Packaging Tax if you manufacture or import 10 or more tonnes of plastic packaging over a 12-month period, even if all the packaging you manufacture, or import contains 30% or more recycled plastic.

The tax came into effect on 1 April 2022 and you must tell HMRC that you are liable to register by 30 April 2022. We expect more information about how to do this to be provided in time. You must include all plastic packaging manufactured or imported, including packaging:

used in the immediate packaging of a medicinal product
components that are permanently designated or set aside for use other than a packaging use
containing 30% or more recycled plastic content when calculating whether you manufacture or import 10 or more tonnes of plastic packaging