Plastic Packaging Tax
Plastic packaging tax (PPT) came into effect on 1 April 2022. HMRC has refreshed its guidance to summarise the requirement to register for PPT.
Businesses which have manufactured or imported 10 tonnes or more of finished plastic packaging components since 1 April 2022 (or expect to do so in the following 30 days) must register using HMRC’s online ‘Register for Plastic Packaging Tax service’, within 30 days of meeting the 10-tonne threshold.
Although partnerships cannot currently register for PPT online, the guidance advises partnerships to email HMRC with their details, noting that HMRC will contact them when registration becomes available.
Charitable incorporated organisations, trusts, overseas businesses not established in the UK and public bodies cannot register directly using the online service. For these entities, a separate online form is available (accessed via the Government Gateway).
Separate guidance covering group registration for PPT has been updated to clarify that:
a group of companies is two or more corporate bodies established in the UK and under common control, and to register a group, the representative member must confirm the expected weight of the finished plastic packaging components group companies will manufacture or import in the next 12 months, and the date they met the 10-tonne threshold
HMRC has updated its guidance ‘Check which packaging is subject to Plastic Packaging Tax’ to confirm that pre-consumer plastic does not include scrap or regrind which can be reused in the process from which it was generated after only minimal reprocessing, for example shredding and grinding.
However, where waste material is recovered and requires reprocessing involving melting and extrusion into pellets at a reprocessing facility before it can be reused, it can be treated by manufacturers as recycled plastic for any process.
UPDATE: HMRC has published further guidance on the new plastic packaging tax (PPT) which comes into operation on 1 April 2022.
Record keeping and accounts for Plastic Packaging Tax and Check if you need to register for Plastic Packaging Tax cover the content of accounts which businesses must retain for at least six years.
How to work out the weight of packaging for Plastic Packaging Tax explains how to work out the weight of plastic packaging components and each material used when manufacturing them. Businesses must calculate this for each component manufactured or imported to determine whether they need to register for PPT and to calculate how much tax is due.
How to make due diligence checks for Plastic Packaging Tax confirms that businesses manufacturing, importing or purchasing plastic packaging components from another business should carry out due diligence checks to lessen the risk of being involved in a supply chain where PPT goes unpaid. Records of those checks must also be kept. Businesses which do not carry out checks or keep sufficient records could be held jointly and severally liable for unpaid PPT.
This news update is published for the general information of 4 Eyes Ltd personnel, clients and contacts. It provides only an overview of the rules and regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. No responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this e-mail will be accepted by the authors or the firm.