UK Plastic Packaging Tax

March 18th, 2021

On 12th November 2020, the UK Government published a summary of responses, primary draft legislation and explanatory notes following Phase 2 of the consultation on a plastic packaging tax.

The tax aims to encourage the use of recycled plastic within packaging, by creating a financial burden on plastic packaging that has less than 30% recycled content.

Whilst many of the finer details of the legislation are still to be decided, the following key points are confirmed:

  • introduction on 1 April 2022
  • a £200 per tonne tax rate on plastic packaging that has been manufactured in, or imported into, the UK and has less than 30% recycled content of plastic
  • a 10 tonne de-minimis per 12-month period
  • regulated by Her Majesty’s Revenue and Customs
  • quarterly reporting in line with tax year, and
  • group registrations are allowed

Two important changes that came out of the second phase of the consultation were:

  • the tax point being moved from the primary manufacturer to the final stage of modification before the packaging is pack or filled, and
  • the inclusion of items used for the transportation, storage or preservation of goods by the user, and not just as packaging in the supply chain.

The UK Government will now co-operate with industry on the implementation of the tax before introducing legislation in a Finance Bill.

Landbell Group company ERP UK will continue to monitor and communicate developments via its newsletters and webinars, and will also develop services to assist organisations with the collection, calculation, submission of data on a quarterly basis, and evidence gathering to help businesses comply.

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