Colin Laidlaw CTA AIIT
- VAT Tax Director - Technical Specialist
- +44 (0)330 124 1399
- Email Colin[email protected]
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Plastic Packaging Tax (PPT) was introduced in the UK on 1 April 2022.
This is an environmental tax with the aim to reduce the amount of virgin plastic being used in the supply chain although cynics will say that it’s just another revenue tool. Arguably the cost of compliance may actually be higher than the tax payable for many but either way, it’s been introduced and businesses need to ensure that they have confirmed whether it applies to them.
Anecdotally HMRC were expecting revenue of over £200m in the first year with potentially 20,000 businesses registering for PPT on 1 April whereas in reality it is apparently just below 1000 so far. This may be because the threshold has not been reached yet but there is growing concern that businesses have just failed to recognise the impact of PPT on them and not done anything.
Some key points:
If your business manufactures or imports significant amounts of plastic which is used as packaging either in the supply chain or as a one-off use by the consumer then you need to consider whether you are liable to register for PPT.
Even if you are not liable to register, you will need to be able to demonstrate this to HMRC if they come knocking.
Our article published earlier this year sets out further details but if you need assistance or more information we would be happy to discuss it with you.
For more information about the topic explored in this article, contact Colin Laidlaw here.
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