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March 17, 2023
2023-0506

UK increases Plastic Packaging Tax rate

  • The United Kingdom (UK) Tax Authority, His Majesty's Revenue and Customs (HMRC), issued updated Guidance about registering for the UK Plastic Packaging Tax (PPT).
  • Effective 1 April 2023, the rate of PPT will increase to £210.82 per tonne (from £200 per tonne).

PPT registration

The HMRC Guidance issued on 15 March 2023, reminds businesses that they must register for the UK 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
  • Have imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022.

Effective 31 March 2023, the retrospective test will apply on the last day of every month i.e., businesses must register for the PPT if they have imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components in the previous12 months.

PPT payment

Businesses need to pay the PPT if they have manufactured or imported plastic packaging components which contain less than 30% recycled plastic.

PPT rate increase

The tax came into force on 1 April 2022 and is charged at a rate of:

  • £200 per tonne from 1 April 2022
  • £210.82 per tonne from 1 April 2023

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

Ernst & Young LLP (United Kingdom), London

 

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