21 January 2022
From 1 April 2022 a new tax on plastic packaging will take effect. The Plastic Packaging Tax (PPT) is a new tax that applies to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic.
The PPT has been the subject of a number of policy papers, consultations and guidance documents during its development. Material has been published by HMRC over the course of 2021, including a range of new guidance documents in late December. Guidance has continued to be published and updated in January 2022, and there is now an extensive collection of officially published guidance surrounding the tax.
However, the sheer volume of this guidance can make it difficult for businesses to understand the requirements of the PPT and what action they need to take.
To this end, the BDIA has produced a guidance summary document for the PPT. This document is intended as an introductory guide to, and overview of, the requirements of PPT. As well as providing a summary of the requirements, it signposts throughout to relevant sources of officially published guidance so that members can explore these areas in more detail.
Also included is a section featuring answers to some of the most frequently asked questions surrounding the PPT.
We would encourage all members to familiarise themselves with the requirements of the PPT. A key feature of the legislation is that it focusses on the whole of the supply chain, and even if you business will not be required to pay the tax there may still be steps that you should take in order to ensure compliance.