As of 1 April 2022, the government will be introducing a tax on plastic packaging. The objective of this increase is to give businesses a clear economic incentive to use recycled plastics and ultimately increase levels of recycling and divert away from landfill. IN this blog post we’ll take a look at what’s changing, who these changes will affect and what it means for them and how to adjust to these new changes.
From April 1 2022, there will be a £200 tax per metric tonne for every UK business that manufacture or import 10 tonnes of plastic packaging in a year. This won’t apply to plastic packaging that contains at least 30% recycled plastic.
Who will this impact?
This will affect around 20,000 UK businesses that import or manufacture plastic packaging that contains less than 30% recycled plastic in quantities of 10 tonnes or more.
What does this mean for those impacted?
The impact of the new Plastic Packaging Tax on businesses is expected to be significant due to familiarisation with the new rules, training and registration with HMRC and developing the required framework to complete tax returns.
This can include keeping appropriate records, filing and paying tax returns. This can also impact your liability requirements, so you could have to carry out more due diligence on your supply chain.
Adjusting to these changes
If you think the Plastic Packaging Tax will affect your business, you can check the guidance on the Governments website. Should you need any help or have any questions about the changes discussed in this blog post, you can contact Denise Welsby via email at email@example.com