Skip to main content
The plastic packing tax: What you need to know

The plastic packing tax: What you need to know

The UK government will introduce the Plastic Packaging Tax on 1 April 2022, charging £200 per tonne. The tax will apply to businesses that manufacture or import 10 or more tonnes of finished plastic components within the preceding 12 month period or plan on doing so within the following 30 days.

The government says that the PPT will only be levied on packaging components that contain less than 30 per cent recycled plastic. Components that contain more than that will not be subject to the new charge. Plastic packaging used in medical products is also exempt from PPT. This includes any products designed to prevent or treat diseases in human beings, and any items administered to humans to improve their health or make a medical diagnosis.

Why introduce the tax?

The Plastic Packaging Tax (PPT) is an environmental tax designed to accommodate the negative externalities associated with plastic packaging usage. The government hopes that the new levy will reflect the true cost of plastic packaging use and incentivise companies to use alternative means to pack and ship their products.

The PPT may reduce the amount of plastic going to landfills and incineration, and could cause a fall in the total quantities consumed by the economy. The tax was announced in the Autumn 2021 budget, and the government continues consultations with business and other interest groups to finalise how it will implement it, and the shape that it will take.

What type of packaging is subject to the tax?

The government says that businesses will need to pay PPT if:

1. Plastic packaging components are produced in the UK

2. Finished plastic packaging components are imported into the UK on behalf of a company

3. Plastic packaging is being used for business purposes

A “plastic packaging component” is something that is either suitable for use alone, or in combination with other packaging components. For instance, a company might include a plastic bag inside a cardboard box. The plastic bag would be subject to PPT. Packing attracts PPT whenever it's used to protect, contain, handle, deliver or present goods.

The definition, therefore, is broad enough to include things like bulk containers and coat hangers. Critically, the PPT will apply to packages in all stages of the supply chain, not just final consumer products. If you're manufacturing plastic packaging for export, you may defer payment for up to twelve months under certain conditions. The government says that PPT liability is cancelled if you export within the allotted twelve-month period.

How to register for the new tax

If you qualify for PPT under the conditions outlined above, you will need to register with the tax authorities from 1 April 2022.

Please note that if you use or import more than 10 tonnes of plastic packing and you're exempt from paying the tax because you use 30 per cent recycled plastic or you're using plastic in medical devices, you will need to register with HMRC. Similarly, if your business is based outside of the UK, you must register it and pay tax if you import plastics into the UK.

Affordable Pay-monthly Packages

We offer a full range of services to limited companies, solo trader, partnership, charity, LLP, CIC as well as individuals. We have arranged our services into easy to choose packages that suit your needs.

Start-up
£ 50  / Month (+VAT)

This price plan is suitable for the start-up companies who are not VAT registered.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Payroll & RTI submission for 1 employee
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Assisting with correspondence from HMRC and Companies House
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 80K
Limited Company
£ 100  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered and turnover is less than 100K with a couple of employees.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 2 employees
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • MTD VAT returns submissions – quarterly
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 100K
Company Pro
£ 150  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered; turnovers are more than 100K and have 2 directors and shareholders.

  • Company formation (if required)
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 5 employees (Free)
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Unlimited face to face advice and email support
  • 2 Directors
  • 2 Shareholders
  • Annual turnover should be less than 200K
Company Premium
Let's talk.  / 

This bespoke price plan is suitable for the companies who are VAT registered, with more directors, shareholders and employees. Also, annual turnover is more than 200k and requires further bespoke services.

  • Company formation
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission all employees
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for the all Directors (Free)*
  • Unlimited face to face advice and email support
  • Flexible and can be discussed
  • Annual turnover should be more than 200K

Add on Services

  1. Personal Tax Returns

    This price plan is suitable for self-employed individuals, landlords and those who need to submit Self-Assessment Tax Returns.

    If you need to submit the Self-Assessment Tax Return, we can offer you competitive prices starting from £150 + VAT. Price can vary according to your nature of income. Please contact us for more details.

  2. Tax Investigation
  3. Business Legal Support
  4. Company Formation
  5. Business Mentoring
  6. ARA accounting services for ATOL & ABTA travel companies

    Our commitment to you is that we’ll ensure all the information we’ve submitted to the Civil Aviation Authority is up-to-date and accurate. 

Taxcare Accountancy was formed to provide Small & Medium Businesses with an affordable, proactive and professional accountancy services…