Plastic Packaging Tax UK: Guide for Food and Beverage Producers

Plastic Packaging Tax (PPT) in the UK food and beverage sector is one of the most complex compliance challenges facing producers today.

The F&B industry sits at the sharp end of the UK's packaging regulations. From multi-layer pouches that protect perishables to the billions of bottles, trays and films moving through grocery supply chains every year, F&B producers face some of the most complex compliance questions in the country.

Plastic Packaging Tax (PPT) is one of the biggest. Add packaging EPR fees, recyclability labelling and an evolving recycled content market into the mix, and it’s little wonder compliance teams are feeling the pressure.

This FAQ guide cuts through the noise. It answers the questions we hear most often from compliance managers, packaging technologists and supply chain leads across the food, drink and grocery sectors, with practical guidance on how to stay compliant and turn regulation into a commercial advantage. Let’s get started.

What is Plastic Packaging Tax and why does it matter to F&B businesses?

Plastic Packaging Tax has applied across the UK since April 2022. It's regulated by His Majesty's Revenue and Customs (HMRC), in the same way as VAT, and it targets plastic packaging components that contain less than 30% recycled content.

The current rate is £228.82 per tonne for the 2026-27 year, up from £223.69 the year before. That figure may sound modest in isolation, but for F&B businesses moving thousands of tonnes of bottles, films, trays and closures, the cumulative cost can run into hundreds of thousands of pounds annually.

The tax matters for three reasons:

• It carries real penalties. Obligated businesses that fail to register face fines and back payments.
• It compounds with other obligations. PPT sits alongside packaging EPR regulations and is in addition to the costs of PRNs and of Household Packaging Disposal fees, rather than replacing them.
• It shapes supplier pricing. Even if your business isn't directly liable, suppliers are passing PPT costs down the chain.

For the F&B sector, where margins are tight and packaging is largely unavoidable, getting PPT right isn't optional.

Does Plastic Packaging Tax apply to my food or drink business?

PPT affects any business that:

• Manufactures plastic packaging components in the UK
• Imports plastic packaging into the UK, whether empty or filled with goods
• Carries out a substantial modification on a piece of plastic packaging
• Handles 10 tonnes or more of finished plastic packaging components in any rolling 12-month period

That last point catches more F&B businesses than you might expect. A growing craft brewer importing pre-formed PET bottles, a ready-meal manufacturer producing trays in-house, or a grocery brand importing filled pouches from overseas suppliers, all need to track their volumes.

Registration with HMRC is mandatory once you hit, or expect to hit within 30 days, the 10-tonne threshold. That obligation applies even if every component you handle qualifies for the 30% recycled content exemption.

What counts as 'plastic packaging' in food and beverage applications?

This is where F&B compliance gets technical, and where mistakes can be costly.

A component is treated as plastic if plastic weighs more than any single other material in it. So, for instance, a glass jar with a plastic-lined metal lid needs to be assessed component by component. A multi-layer film pouch with paper, foil and polymer layers will usually count as plastic if the polymer is the heaviest single material.

Biodegradable, compostable and oxo-degradable polymers all count as plastic under HMRC rules. So do additives like dyes and fillers. Cellulose-based materials are more nuanced: unmodified cellulose (such as viscose) isn't plastic, but chemically modified cellulose (such as cellulose acetate) is.

For F&B businesses using complex packaging formats - think retort pouches, modified atmosphere trays, vacuum-skin packs - every individual component (the tray, the lidding film, the label, the closure) must be assessed separately.

How does the 30% recycled content exemption work?

Packaging components containing at least 30% recycled plastic by weight are not chargeable under PPT. But, and it's an important but, they still count toward your 10-tonne registration threshold and still require full record-keeping.

Recycled content must come from genuine pre-consumer or post-consumer waste that has been properly reprocessed (remelted, compounded or repelletised). Simply shredding factory offcuts isn't enough.

Two changes are worth flagging now:

• From April 2027, pre-consumer waste will no longer count toward the 30% threshold. Only post-consumer recycled content, and chemically recycled plastic verified through an approved mass balance approach, will qualify. F&B brands relying on closed-loop offcut programmes need to plan for this shift.
• Evidence is everything. HMRC will not accept unsubstantiated supplier claims. Certificates, test reports and verified declarations are essential, and unverified claims expose you to back-tax liability.

What practical options do F&B brands have to reduce PPT exposure?

Most F&B businesses have more levers than they realise:

• Switch to rPET where format allows. Food-grade rPET performs across ambient, chilled and frozen applications, making it one of the most versatile options for hitting the 30% threshold.
• Explore food-grade rPP. It's available, though supply remains tight and prices are higher than virgin PP.
• Lightweight your packaging. Reducing pack weight without compromising function cuts your tax liability and your EPR fees in one move.
• Reconsider material choice entirely. Glass, for example, is infinitely recyclable and not subject to PPT, though weight and transport emissions need balancing.
• Tighten supplier evidence. Some packaging already meets the 30% threshold but isn't being declared properly. A data review often uncovers savings hiding in plain sight.

How does PPT interact with packaging EPR fees?

PPT and packaging EPR are separate regimes with separate bills.

Packaging EPR (pEPR) charges producers for the cost of managing packaging once it's been used by households. Fees vary by material, with plastic carrying some of the highest rates because of the cost of processing it through the UK waste system.

For F&B brands, the two regimes pull in the same direction. Increasing recycled content reduces PPT liability. Choosing more recyclable formats and clearer labelling improves your EPR modulation rating, which can lower your fees over time. The Simpler Recycling[3] reforms, which brought consistent kerbside collections into force across England on 31 March 2026, should also improve the supply of post-consumer recyclate over time. Soft plastic film collections follow on 31 March 2027, which is good news for brands chasing the 30% threshold on flexible formats.

Treating PPT and EPR as a joined-up strategy, rather than two separate compliance headaches, is where the smartest F&B businesses are getting ahead.

When and how do I report Plastic Packaging Tax?

Once registered with HMRC, you'll submit quarterly returns covering:

• April to June
• July to September
• October to December
• January to March

Returns and payments are due by the last working day of the month following each quarter end. You'll need supporting evidence for any packaging that's exempt, exported or not liable, and records must be kept for six years.

Tax credits are available for exported packaging, and deferrals are possible where packaging is intended for export within 12 months. For F&B exporters, this can be a meaningful cash-flow benefit if managed properly.

What happens if we get it wrong?

The consequences of non-compliance are stiffer than many businesses appreciate. HMRC can issue penalties for failure to register, late returns, inaccurate declarations and missing records. In cases of deliberate non-compliance, company officers can be held personally liable for unpaid tax.

For F&B brands with thousands of SKUs and multi-tier supplier networks, the risk isn't usually wilful avoidance, it's getting overwhelmed by the data and missing something.

And, for many producers, plastic packaging compliance is now as commercially important as procurement or logistics.

How can ERP UK help with Plastic Packaging Tax?

Collecting product weights, verifying supplier data and calculating quarterly declarations is time-consuming. F&B businesses often deal with thousands of SKUs, multiple suppliers, different group companies and inconsistent data formats. That's where we come in.

As the UK's longest-standing environmental data reporting service, ERP UK's Data Services team takes the complexity off your plate. For Plastic Packaging Tax, we can:

• Contact your suppliers on your behalf and gather the required information quickly and efficiently
• Identify what's in scope, out of scope and exempt, and which components meet the 30% recycled content threshold
• Confirm whether you sit under, at or over the 10-tonne threshold, with a tracking service for businesses approaching it
• Determine your full PPT liability
• Produce bespoke reports to complete your HMRC declarations accurately
• Supply supporting evidence for exemptions and recycled content declarations on HMRC request
• Pinpoint which suppliers contribute most to your liability, so you can target packaging improvements where they'll have the biggest impact

We also support our clients across batteries, electricals and the wider packaging EPR regime, so PPT can be managed as part of a joined-up compliance strategy rather than in isolation.

Dedicated ERP UK services

This FAQs blog has covered the basics of Plastic Packaging Tax in the food and beverage sector.  You can find more information on our dedicated Plastic Packaging Tax webpage here

If you’d like to talk to our Data Services team about how we can simplify your Plastic Packaging Tax compliance, get in touch with us here

Disclaimer: While the information provided is believed to be correct at the time of issue, neither ERP UK nor its advisors accept liability in any circumstances for its accuracy, adequacy or completeness, nor will any express or implied warranty be given.

Contact us today:

Telephone: +44 (0)20 3142 6452

E-mail: uk@erp-recycling.org

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