Even after the first Plastic Packaging Tax returns have passed, many businesses are still navigating their requirements and considering how to accommodate this significant regulatory change into their daily operations.
The good news is that Ecoveritas is here to help!
The new Plastic Packaging Tax (PPT) came into effect on 1 April, with the first return covering the period to 30 June.
It was payable on plastic packaging components that contain less than 30% recycled plastic. However, businesses are still required to register for PPT if they “expect to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days; or has imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022.”
The HMRC government gateway includes advice and guidance on who must register, and when, for the tax.
When to submit your return
Once you have met the 10-tonne threshold and registered your liability for Plastic Packaging Tax, you’ll need to submit a return to HMRC four times a year.
Your returns must cover an accounting period.
The accounting periods are:
- 1 April to 30 June
- 1 July to 30 September
- 1 October to 31 December
- 1 January to 31 March
You must submit the return and pay any tax due no later than the last working day of the month following the end of the accounting period you are reporting.
Plastic Packaging Tax timeline
1 April 2022 – The Plastic Packaging Tax came into force, with Q1 of the tax year 2022 being the first quarter of reporting to HMRC that is required.
- April 2022 – The Plastic Packaging Tax Launched
- July 2022 – First quarterly submission to HMRC – submit your return
- October 2022 – Second quarterly submission to HMRC – submit your return
- January 2023 – Third quarterly submission to HMRC – submit your return
- April 2023 – Fourth quarterly submission to HMRC – submit your return
What to include on your return
You must give all weights in kgs and round them down to the nearest kg on your return.
To complete your return, you will need to know and report the total weights of any finished plastic packaging components that:
- You manufactured in the UK during the accounting period
- You imported into the UK during the accounting period
- You exported in the accounting period, or you intend to export in the next 12 months
- You manufactured or imported for use in the immediate packaging of licenced human medicines in the accounting period that were not and will not be exported
- Contain at least 30% recycled plastic content that you manufactured or imported in the accounting period that will not be exported
- You have paid tax on in a previous accounting period, that another business has later converted or exported
Try our Plastic Tax Calculator
The Ecoveritas Plastic Packaging Tax calculator enables users to input information relating to the amount of plastic packaging they manufacture, import and export, before generating an estimate of direct costs based on the current draft of the plastic tax legislation. It also allows users to calculate potential annual tax savings that could be achieved by increasing the amount of recycled content used in the manufacture of plastic packaging.
Partner with Ecoveritas to make your packaging less taxing!
At Ecoveritas, we provide technical tools and business intelligence to support you in making better decisions on packaging strategy development and performance.
Our expertise in packaging, data and Global Extended Producer Responsibility (EPR) enables us to deliver a comprehensive range of services designed to minimise the environmental impact of your packaging.
Visit our website or speak to one of our advisors today on +44 (0)1865 721375 to find out how we can help you to take the complexity out of packaging compliance!
