United Kingdom - Plastic packaging tax rate increased

11 April 2023

The UK tax authorities (HMRC) released guidance on 15 March 2023, which reminds businesses that they may be required to register for purposes of the UK plastic packaging tax (PPT) and that the tax rate increased from GBP 200 per tonne to GBP 210 on 1 April 2023. The PPT became effective on 1 April 2022 (for prior coverage, see the item in the Bytes column in the April 2022 issue of Indirect Tax News).

Businesses must pay the PPT if they have manufactured or imported plastic packaging components that contain less than 30% recycled plastic. Registration is required where the business:

  • Expects to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days; or
  • Has imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022. Starting on 31 March 2023, businesses need to look back over the past 12 months on the last day of each month and register if the threshold is exceeded.

It was also announced in the UK Spring Budget released on 15 March that the government will update the penalty regime so that businesses that are principally liable and businesses that are held secondarily liable, or joint and severally liable, incur the same penalties for noncompliance.

Chris Morgan
BDO in United Kingdom