The Plastic Packaging Tax (PPT) came into effect in April this year, requiring businesses that manufacture or import plastic packaging to comply with PPT regulations.
The first quarterly tax return is now open – you’ll need to complete it AND pay any tax due by the 29th of July – so if you’re still not registered, you need to act fast!
What Is The PPT?
The PPT is an environmental tax that has been introduced in order to encourage the use of more recycled matter. The tax will be applicable for plastic packaging that does not contain at least 30% recycled plastic, and will be charged at £200 per metric tonne.
Who Needs To Register For The PPT?
Any business that has manufactured or imported 10 tonnes or more of finished plastic packaging components since April (or expects to in the next 30 days) is required to register, even if their packaging contains over 30% recycled plastic. Companies are also able to register as a group by appointing a UK-established representative member, if they meet the criteria.
Fines are in place for those that don’t comply – a £500 fine plus a £40 daily penalty – so do make sure that you register in good time if your business is required to do so.
For further information and to register your business, visit the PPT registration page. If you’re still uncertain whether or not your business meets the criteria, you can check if you need to register via the Gov website.
What Records Do You Need To Keep For The PPT?
In order to complete your quarterly tax returns, you’ll need to keep records of the weight details of each plastic packaging component (in kg), along with your calculations on the percentage of recycled plastic and its source, and provide supporting evidence. You’ll also need to provide evidence for any exemptions that you’re claiming. Records should be kept for a minimum of 6 years. Please visit the HMRC website for a thorough explanation of all of the record requirements.
If you’d like further advice regarding your PPT requirements, please do reach out to our team of experienced accountants. We understand that new regulations can feel daunting so we’ll guide you through the process and help you ensure you’re fully compliant with the new procedures. You can contact us via our website.