Plastic Packaging Tax (PPT) is an environmental tax introduced by the UK government on 1st April 2022. The tax applies to plastic packaging manufactured or imported into the UK that contains less than 30 recycled plastic.

The new tax aims to create greater demand for recycled plastic material by encouraging businesses to use recycled content within plastic packaging products. In turn, this helps reduce plastic waste, stimulate increased levels of recycling and support the collection of plastic waste across the UK.

Plastic Packaging Tax forms part of the government’s wider waste strategy and works alongside Extended Producer Responsibility(EPR) reforms designed to encourage more sustainable packaging across the supply chain.

Businesses may need to pay PPT if they:

• manufacture plastic packaging in the UK
• importers of plastic packaging into the UK
• import packaged goods containing finished plastic packaging components
• manufacture or import more than 10 tonnes of plastic packaging within a 12-month rolling period

Key points about the UK Plastic Packaging Tax

Some of the main points businesses should understand about the UK Plastic Packaging Tax include:

• the tax applies to plastic packaging manufactured or imported into the UK
• packaging containing 30 recycled plastic or more is exempt from paying the tax
• businesses must register if they handle more than 10 tonnes of plastic packaging in 12 months
• imported plastic packaging and packaged goods may still fall within scope
• businesses may need to complete tax returns and keep accurate records
• certain transport packaging and packaging designed for long term storage may qualify for exemptions

The current Plastic Packaging Tax rates are:

Businesses should carry out due diligence and maintain accurate records to remain compliant.

What counts as plastic packaging?

For Packaging Tax purposes, plastic means a polymer material used to contain, protect, handle or present goods. This includes biodegradable, compostable and oxo-degradable plastics.

Examples of plastic packaging products that may fall within scope include:

• plastic bottles and containers
• trays and tubs
• protective film and wrap
• carrier bags
• single use packaging
• food packaging
• imported plastic packaging

The tax can also apply to finished plastic packaging components imported into the UK as part of packaged goods.

Some packaging may be exempt or outside the scope of the tax, including:

• transport packaging around multiple sales units
• packaging designed for long term storage
• immediate packaging for licensed human medicines
• reusable packaging used as part of product presentation

Businesses should understand how much recycled content is used within their packaging to determine whether the tax applies.

Do I need to comply with Plastic Packaging Tax?

Businesses may need to pay PPT if they manufacture or import 10 tonnes of plastic packaging within a rolling 12-month period.

The tax applies to businesses that:

• manufacture plastic packaging in the UK
• importers of plastic packaging or packaged goods
• import finished plastic packaging components into the UK
• use plastic packaging containing less than 30 recycled plastic

Even if packaging is exempt from paying the tax, businesses may still need to register and report it within their tax returns.

Examples of plastic packaging that may fall within scope include:

• imported plastic packaging
• trays, tubs and film
• plastic bottles and containers
• transport packaging
• packaging used to protect packaged goods during transit

Businesses should also carry out due diligence across their supply chain to ensure accurate reporting and compliance with Packaging Tax requirements.

How to register and pay PPT

Businesses that meet the threshold for Plastic Packaging Tax must register with HMRC using a Government Gateway user ID.

Once registered, businesses may need to:

• submit Plastic Packaging Tax returns
• calculate the tax rate owed
• keep records of recycled content and packaging weight
• maintain evidence relating to imported packaging and manufactured packaging components

Businesses are usually required to submit tax returns every quarter. Accurate reporting is important, particularly for manufacturers and importers handling large volumes of plastic packaging products.

Where possible, businesses can reduce Packaging Tax liability by increasing recycled content or switching to more sustainable materials within their packaging designed for storage, transit or retail use.

How businesses can reduce Plastic Packaging Tax

One of the most effective ways businesses can reduce Plastic Packaging Tax liability is by increasing the amount of recycled content used within plastic packaging products.

Packaging that contains at least 30 recycled plastic is exempt from paying the tax, creating a clear economic incentive for businesses to use recycled plastic material and more sustainable materials across the supply chain.

Businesses may also reduce Packaging Tax costs by:

• reviewing packaging designed for single use applications
• using recycled material where possible
• reducing unnecessary plastic packaging
• improving packaging efficiency during manufacture
• working with suppliers that support sustainable packaging goals

The scheme aims to create greater demand for recycled material while helping reduce plastic waste, landfill use and pressure on UK recycling infrastructure.

Kite’s route to PPT compliance

At Kite Packaging, we understand that Plastic Packaging Tax compliance can be challenging for businesses managing large volumes of plastic packaging across the supply chain.

We continue working closely with manufacturers, suppliers and customers to increase recycled content across our packaging range and support the use of more sustainable materials wherever possible.

Our team can also provide further advice around:

• Plastic Packaging Tax obligations
• recycled content within packaging products
• packaging compliance requirements
• sustainable packaging alternatives
• Extended Producer Responsibility guidance

For businesses looking to improve compliance or reduce Packaging Tax costs, our team is here to help. Get in touch with Kite Packaging today for further advice and support.

Plastic Packaging Tax FAQs

Got questions about Plastic Packaging Tax? Here are some of the most common questions businesses ask about compliance, recycled content and packaging tax requirements in the UK.

What is Plastic Packaging Tax?

Plastic Packaging Tax is a UK environmental tax introduced in April 2022. The tax applies to plastic packaging manufactured or imported into the UK that contains less than 30 recycled plastic.

Who needs to pay PPT?

Businesses may need to pay PPT if they manufacture or import more than 10 tonnes of plastic packaging within a 12-month rolling period. This includes manufacturers and importers handling finished plastic packaging components or packaged goods.

Does imported plastic packaging count towards the tax?

Yes, imported plastic packaging may still fall within scope of the tax. This includes imported empty packaging, filled packaging and packaged goods imported into the UK.

What packaging is exempt from Plastic Packaging Tax?

Some packaging may be exempt from paying the tax, including packaging containing 30 recycled plastic or more, immediate packaging for human medicines and some transport packaging designed for long term storage.

How do businesses register for Plastic Packaging Tax?

Businesses can register for Plastic Packaging Tax through HMRC using a Government Gateway user ID. Once registered, businesses may need to submit quarterly tax returns and maintain accurate records relating to recycled content, packaging weight and imported or manufactured packaging components.

Businesses should also carry out due diligence across their supply chain to ensure packaging data is accurate and compliant with UK Plastic Packaging Tax requirements.

How can businesses reduce Plastic Packaging Tax costs?

Businesses can reduce Packaging Tax liability by increasing recycled content within plastic packaging products and ensuring packaging contains at least 30 recycled plastic where possible. Reviewing packaging designed for single use applications and switching to more sustainable materials can also help reduce costs.

Working closely with suppliers and improving packaging efficiency across the supply chain may also help businesses reduce plastic waste and improve long-term sustainability goals.

Kite's Plastic Packaging Tax white paper

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