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03 May 2022

UK Tax Authority updates Plastic Packaging Tax Guidance

The United Kingdom (UK) Plastic Packaging Tax (PPT) came into effect on 1 April 2022. On 29 April 2022, the UK Tax Authority, Her Majesty’s Revenue and Customs (HMRC) updated their Guidance related to several areas of the new tax as outlined below:

Packaging subject to PPT

Guidance explains what classifies as plastic, recycled plastic and packaging components, and if the packaging manufactured or imported is subject to the tax. The HMRC also added examples of how to work out if multiple material packaging components are plastic and how to work out the recycled plastic content of plastic packaging components.

Claiming a credit or deferral of paying PPT

Guidance explains how to claim a credit or defer paying the PPT if the enterprise manufactures or imports 10 or more tons of finished plastic packaging components over a 12-month period and are liable to pay the tax. Examples have been added to show how to claim a credit and defer a payment.

Check when registration for PPT is required

Guidance explains who needs to register for the tax and when, and what one must do before registration. The HMRC added examples of how to apply forward look and backwards look tests.

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For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (United Kingdom), London

Document ID: 2022-0710

 

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