Plastic Packaging Tax (PPT) – what does it mean for your business

Plastic Packaging Tax (PPT) – what does it mean for your business

From April 2022, the UK will be introducing a Plastic Packaging Tax (PPT). This will apply a tax at the rate of £200 per ton to any plastic packaging that doesn’t contain at least 30% recycled materials.

Any company that manufactures or imports more than 10 tons of plastic over the course of a year will be required to register. They will also need to keep additional records to calculate the amount of the tax that they need to pay if they are the company that’s performing the last substantial modification before the filing, packing and labelling process.

According to the government, the PPT is designed to give an incentive to businesses to use recycled plastic material in plastic packaging. It’s hoped it will remove the financial disincentive that currently exists to use recycled plastic, creating a much greater demand for recycled plastic materials.

The HM Revenue & Customs policy paper has stated that the objective of the PPT is to “provide a clear economic incentive for businesses to use recycled plastic material in plastic packaging”. This will help to create demand for recycled material and, in turn, stimulate increased levels of recycling and collection of plastic waste, reducing the amount that ends up in landfills or being incinerated.


What does it mean for your business?

While your business may not be importing or manufacturing large amounts of plastic packaging, you may still find yourself liable for tax that should already have been paid. This is because a crucial aspect of the PPT regime is that downstream businesses that purchase plastic packaging may be found jointly and severally liable for any unpaid tax.

This means that businesses should carry out due diligence checks to establish the integrity of their suppliers in connection with the PPT. HMRC guidance states these checks should be carried out every 12 months, or sooner if your business is made aware of any changes before the 12 months have passed.


Are there any alternatives?

To remove the risk of being caught up in PPT liability and to remove the hassle of having to conduct due diligence, purchasing eco-friendly packaging for your business is a smart alternative.

This is any packaging that’s easy to recycle and has a lower carbon footprint. Fortunately, this is increasingly available across different packaging options and importantly, it’s also packaging that’s not liable for PPT.


How Hague can help

At Hague, we provide a comprehensive packaging service for our clients. We’re serious about playing our part in creating a more sustainable future, and provide life-long recyclable packaging, personalised with your logo and company details for everyday use or for special promotional events or exhibitions.

We can combine great design with recyclable materials to create packaging that supports your brand while freeing you from the risk of being caught up in PPT.  Eco-packaging can help improve your environmental impact overall, helping to make your brand more attractive to consumers who are increasingly conscious of environmental issues.

To find out more about how Hague can help you avoid being drawn into the new Plastic Packing Tax while improving your company’s environmental credentials, call +44 (0)1924 244555 or email today.