AI Plastic Tax

From April 2022, a new tax will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic.

It is the Government’s aim to incentivise businesses to manufacture recycled plastic, creating a greater demand for the material, thereby increasing levels of recycling and collection of plastic waste, and reducing its impact on the environment.

A business manufacturing or importing over 10 tonnes of plastic packaging in any 12-month period will be obliged to register to pay the new tax, even if it is set not to pay it due to its packaging being above the 30% minimum recycled figure. Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.

The current tax charge per tonne of qualifying packaging produced or imported proposed to be £200, reduced according to weight for less than a tonne.

We recommend that business owners set to be liable to pay the new tax assess the likely financial impact on their businesses and make appropriate changes to their packaging. Reporting and payment of the tax will align with accounting periods and business owners will be expected to self-report through HMRC.

While this is a tax on business, consumers will be affected by the tax where businesses elect to pass on the cost of the new tax to the public.

For more support assessing the situation for your business, call our friendly team on 01249 712074.

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