Joshua Leigh & Co

Plastic Packaging Tax: what to know as deadline looms

There are just two weeks left until the Plastic Packaging Tax (PPT) comes into effect on 1 April 2022.

You may need to sign up for the PPT if you produce or import 10 or more tonnes of plastic packaging within a 12 month period.

To ensure that you and your business are prepared, our expert team have answered some frequently asked questions:

What is the PPT?

The Plastic Packaging Tax is a scheme that has been in the works since 2018, acting as a key component of the Government’s environmental and sustainability plans.

It will enforce a tax on the manufacture or import of plastic packaging with less than 30 per cent recycled content.

This is charged at £200 per metric tonne of packaging and is to be paid quarterly.

Will it affect my business?

If your business imports or manufactures 10 tonnes of plastic packaging or more per year, you will need to register for the new online service.

Additionally, organisations that do so will need to maintain records, regardless of whether they meet the 10 tonne or 30 per cent recycled contents thresholds.

Even if you don’t manufacture or import plastic packaging, you may notice increased costs for any plastic packaging you use or for any products you buy or sell that come in plastic packaging.

What are the exemptions?

There are four types of packaging exempt from the PPT, irrespective of how much recycled plastic they contain, including packaging that is:

• Used as transport packaging on imported goods.
• Used in aircraft, ship and rail goods stores.
• Used in the immediate packaging of a medicinal product.
• That are permanently designated or set aside for use other than for a packaging use, such as toolboxes, first aid boxes or CD cases.

How should I prepare?

As the introduction of the PPT looms, it is important to take the time to understand the legislation and how it will affect you.

For a full rundown of the criteria, check the GOV website here.

Some other steps to take include:

• Switching to recycled materials so you won’t need to pay the tax. This is the simplest step, and the sole aim of the PPT.
• Talking to your suppliers. If you wish to change suppliers or packaging, this will cause supply chain issues that should be handled before 1 April 2022.

For help and advice on the Plastic Packaging Tax or related matters, get in touch with our expert team today.

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