Plastic Packaging Tax (PPT)
A new tax that applies to plastic packaging produced in, or imported into the UK that does not contain at least 30% recycled plastic is due to be introduced in April 2022.
Plastic packaging is packaging that is predominantly plastic by weight and it will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.
Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.
As part of helping businesses prepare for Plastic Packaging Tax (PPT) ahead of its introduction in April 2022, HMRC is sharing the following two updates.
Updated Plastic Packaging Tax guidance on ‘last substantial modification’
Earlier this year HMRC published Get your business ready for the Plastic Packaging Tax guidance on GOV.UK, which provides an overview and further information on the tax.
The Further information for businesses part of this guidance has been further updated. This provides greater detail on who is liable to account for the tax, by clarifying when the packaging component is finished, i.e. when the ‘last substantial modification’ has taken place. This information is set out in section 2.4 of the guidance.
Decision trees on what plastic packaging is in scope of the tax and who is liable to account for it
HMRC has produced two ‘decision tree’ documents to provide a step-by-step guide to assist businesses in:
Plastic packaging is packaging that is predominantly plastic by weight and it will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.
Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.
As part of helping businesses prepare for Plastic Packaging Tax (PPT) ahead of its introduction in April 2022, HMRC is sharing the following two updates.
Updated Plastic Packaging Tax guidance on ‘last substantial modification’
Earlier this year HMRC published Get your business ready for the Plastic Packaging Tax guidance on GOV.UK, which provides an overview and further information on the tax.
The Further information for businesses part of this guidance has been further updated. This provides greater detail on who is liable to account for the tax, by clarifying when the packaging component is finished, i.e. when the ‘last substantial modification’ has taken place. This information is set out in section 2.4 of the guidance.
Decision trees on what plastic packaging is in scope of the tax and who is liable to account for it
HMRC has produced two ‘decision tree’ documents to provide a step-by-step guide to assist businesses in:
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Determining if plastic packaging is in scope of the tax, and
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Who is required to account and potentially pay tax on the plastic packaging.
Further detailed guidance and support to businesses will be provided in the coming months and we will share this with you when it is received.