Further information from HMRC on registering for the Plastic Packaging Tax 2022

The introduction of the Plastic Packaging Tax is now only months away and HMRC has updated information around registering for the tax for those businesses who need to prepare for April 2022.

The Plastic Packaging Tax is a new tax that will be introduced on 1^st April 2022. It is designed to encourage the use of more recycled plastic and will apply to plastic packaging produced in, or imported into, the UK and that does not contain at least 30% recycled plastic.

The Plastic Packaging Tax will apply to businesses that manufacture or import plastic packaging components or import packaged goods into the UK. The UK government has estimated that it will affect around 20,000 packaging producers and importers. The rate of the Plastic Packaging Tax will be set at £200 per tonne of plastic packaging placed onto the UK market.

Registering for the tax

HMRC states that if your business has manufactured or imported more than 10 tonnes of finished plastic packaging in the UK within the last 12 months, or will do so in the next 30 days, you will need to register for the Plastic Packaging Tax. This only includes finished plastic packaging components – after the last substantial modification has been made.

Businesses will need to register for the Plastic Packaging Tax from 1 April 2022 and will need to consider the following.

• If your business has manufactured or imported 10 tonnes or more of finished plastic packaging in the previous 12 months you must register on the 1 April 2022.
• If you are below this amount, but could meet this threshold in the coming year, it is best practice to check each month how much finished plastic packaging your business has manufactured or imported.
• If your business meets the 10-tonne limit, you will be liable from the first day of the month. You will have 30 days to register from the date you met or exceeded the limit.
• If you do not need to register because your business falls below the de minimis of 10 tonnes, then you should still keep records to show this.

How to register for the tax

HMRC has now provided information about how businesses will register for the tax. Should your business meet the requirements listed above, you will need to register with the following information:

• Business type.
• Businesses address and contact details.
• The date your business became liable for Plastic Packaging Tax.
• An estimate of how much finished plastic packaging you expect to manufacture or import in the next 12 months.
• A customer reference number, which could be:
  • Corporation Tax Unique Tax Reference
  • Self Assessment Unique Tax Reference
  • Charity Registration number
  • National Insurance number

Tax returns for Plastic Packaging Tax

Tax returns will be submitted to HMRC and must cover an accounting period.  HMRC advises that businesses must submit and pay any tax due no later than the last working day of the month following the end of the accounting period.

There are eight different weights that should be included in a Plastic Packaging Tax return, such as:

1. The total weight of chargeable plastic packaging components manufactured in the UK in the accounting period (weight in kgs).
2. The total weight of finished plastic packaging components imported into the UK in the accounting period (weight in kgs).
3. The total weight of finished plastic packaging components not subject to the tax (weight in kgs).
4. The total weight of chargeable plastic packaging components manufactured or imported in this accounting period, which have been exported directly by you during this accounting period and are due to be exported directly by you within the next 12 months (weight in kgs).
5. The total weight of any finished plastic packaging components that contain at least 30% recycled plastic content (weight in kgs).

What is your liability for the Plastic Packaging Tax?

To understand more about the Plastic Packaging tax see our complete guide. If you believe you may be liable and wish to forecast the cost to your business use our calculator, or get in touch with our expert team.

Watch our Plastic Tax WebinarCalculate your liability