Plastic Packaging Tax Update:

The rate of plastic packaging tax (PPT) increased on 1 April 2025 from £217.85 per tonne to £223.69 per tonne.  Businesses affected should ensure they update their reporting software to ensure the correct rate of tax is collected.

What is the Plastic Packaging Tax?

On 1 April 2022 PPT was introduced in the UK.  Businesses that manufacture plastic packaging in the UK, or import into the UK plastic packaging components or packaged goods containing plastic packaging, may be liable to pay the Plastic Packing Tax.  The rate of tax was initially £200 per tonne of plastic packaging placed on to the market but has since risen each year in line with the CPI:

£200 per tonne from 1 April 2022

£210.82 per tonne from 1 April 2023

£217.85 per tonne from 1 April 2024

£223.69 per tonne from 1 April 2025

Which businesses are subject to Plastic Packaging Tax?

Businesses will need to review their packaging products to determine whether they classify as plastic.  There are two different type of Plastic Packaging Tax that are subject to the tax:

Use in the supply chain;

Single use by the consumer.

It is important to consider that if the packaging is made up of various components, there will be a need to account for tax on each of those elements.

Plastic packaging that contains 30% or more recycled plastic is not subject to the tax.

When do businesses have to register for Plastic Packaging tax?

Businesses will need to register for Plastic Packaging Tax if they have manufactured or imported 10 or more tonnes of finished plastic packaging elements in the last 12 months, or will do so in the next 30 days.  This includes non-resident taxpayers that import finished plastic packaging into the UK or manufacture it in the UK.

Which records should be maintained in order to comply with the new rules?

Businesses need to ensure that they keep all the records used in order to prepare the plastic packaging tax return. This will include:

a breakdown of the weight of plastic packaging components finished or imported in each period;

the weight of plastic packaging exported in the period on which the tax was deferred;

a breakdown of the weight of any plastic packaging for which a credit is claimed if the packaging has been:

–          exported

–          converted into new packaging components

any adjustments or corrections made to previous accounting periods — including the date and the accounting period they relate to.

Businesses must keep accounts by reference to each ‘product line’ that is produced or imported. A ‘product line’ is a group of plastic packaging components produced to the same specification.

It is important to note that even if the plastic meets the 30% recycled criteria, businesses will still need to register and submit returns with proof of the 30% or more recycled status.

What actions should businesses take if they think they are affected?

Businesses will need to determine whether any products they import or manufacture qualify as plastic packaging in line with the new legislation.  They will also need to determine whether they are subject to registration as a result of breaching the threshold and ensure sufficient data can be generated in order to report accurately.  There are some particular rules around which party in the supply chain is obliged to account for the tax; customers and suppliers should be contacted as early as possible to ensure that all parties in the supply chain are informed of the changes.

How can Essentia help?

Our tax specialists can help businesses understand this tax more in detail and perform a review to determine whether there is an obligation to register, when and how to register, and how to calculate the taxable base.  Essentia can also assist with checking whether enough data is collected in order to comply with the reporting requirements.

For more help, please get in touch with your usual advisor or contact us at:

contact@essentiaglobalservices.com