The Plastics Packaging Tax is set to come into force from 1 April 2022. It applies to manufacturers and importers of plastic packaging, but could also affect retailers, freight transport providers and fresh food producers.
Under the new legislation, plastic packaging which contains less than 30% recyclable material will be subject to taxation of £200 per tonne.
All businesses that have manufactured or imported more than ten tonnes of plastic packaging over the last twelve months will be required to register for the Plastic Packaging Tax.
HMRC will apply fixed or daily penalties for failure to comply with the new legislation. Guidance published in February included registration advice and tests to carry out to determine when and how to register for the plastic packaging tax.
Under the guidance:
- Businesses are required to register for the tax and pay it, within 30 days of becoming liable.
- The two tests businesses should carry out to determine tax liability include:
- Look back over the previous twelve months to ascertain if the ten-tonne threshold has been reached.
- Look forward to the next thirty days to ascertain the likelihood of manufacturing or importing more than ten tons of plastic packaging within that timeframe.
Plastic packaging that comes into direct contact with medicines (such as blister packs for tablets) or containers designed to be used with the goods throughout their lifetime (such as power tool boxes), are exempt from the tax.
Further information:
https://www.aatcomment.org.uk/audience/members/are-you-ready-for-the-plastic-packaging-tax/