Steps you need to take
When is packaging considered plastic?
For the purposes of the plastic packaging tax, plastic means a polymeric material to which additives or substances may have been added. This excludes cellulose-based polymers that have not been chemically modified. Additives include materials such as calcium. When you evaluate the amount of plastic in a packaging component, additives are classified as part of the plastic. Plastics include polymers that are:
- biodegradable
- compostable
- oxo-degradable
If a plastic packaging component is made of multiple materials but contains more plastic by weight (including the additives that make up the plastic) than any other substance, it will be classified as plastic packaging component for tax purposes. Other substances to consider include:
- glass
- aluminum
- steel
- other metals
- paper and cardboard
- wood
- any other substance
You will need to keep records to show what substances are in plastic packaging. Plastic packaging tax is charged for each finished packaging element .
Packaging subject to the tax
Two types of plastic packaging are subject to tax. These are packages designed to be suitable for:
- used in the supply chain
- single-use consumer packaging
2. Decide if you need to register for plastic packaging tax
When the packaging is taxed
You will need to register for a plastic packaging tax if you have manufactured or imported 10 tons or more of finished plastic packaging components in the last 12 months or in the next 30 days.
3. Check, when you need to register for the tax.
Who needs to register
From April 1, 2022, you must register for the plastic packaging tax if you have produced or imported 10 tons or more ready-made elements of plastic packaging in the last 12 months or you will do so in the next 30 days. This includes non-resident taxpayers importing finished plastic packaging into the UK on their own behalf or producing finished plastic packaging in the UK. You must register for the plastic packaging tax within 30 days from the time you are obligated to do so, and you will have to pay the tax on all items on which it is due from the day you become obligated to register. Some packages that are tax-exempt will still need to be counted up to the 10 ton limit. Find out which packaging is exempt from the tax.
When do you need to register
Look back over the last 12 months
You need to register if you have produced or imported 10 tons or more of finished plastic packages in the last 12 months. You should check monthly how many finished plastic packages you have produced and imported in the last 12 months. If you reach the 10 ton limit, you will have a response from the first of the month. You will have 30 days to register from the date you reach or exceed the limit. As the tax goes into effect on April 1, 2022, this test works differently between April 1, 2022 and March 30, 2023. Just look back on April 1, 2022.
Look forward to the next 30 days
You must register if you will be producing or importing 10 tonnes or more of finished plastic packaging in the next 30 days. This test can be applied at any time. If you expect to meet or exceed the 10 tonnes limit, you will be responsible from the date you had reason to believe you would hit the limit. You will have 30 days to register from the date you hit or exceed the limit.
If you don’t need to register
If you do not need to register, you should keep records to show that you are producing or importing less than 10 tonnes per year of finished plastic packaging, including filled packaging.
If you are a partnership or an unincorporated body
You must register if at least one partner or business person has produced or imported 10 tonnes or more of finished plastic packaging components in the last 12 months or will do so in the next 30 days, all members will then be jointly and severally liable for tax on plastic packaging.