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Published:August 19, 2022

Is your business ready for the UK Plastic Packaging Tax? How to navigate the new rules

The UK’s new plastic packaging tax creates a complex new set of compliance and record-keeping obligations. If your business imports or produces plastic packaging, you need to carefully assess your potential obligations and develop a robust compliance strategy. VAT IT’s expert team has designed a specialist programme to optimise compliance that fits your company’s supply chain.

Is your business ready for the UK Plastic Packaging Tax? How to navigate the new rules

Is your business ready for the UK plastic packaging tax? The new tax, which has been in force since 1 April 2022, applies when a business imports or manufactures plastic packaging. If the relevant plastic packaging is not at least 30% recycled plastic, then you may be liable for the PPT.

As this is a new tax, you should seek expert advice if you are unsure whether or not you have an obligation or how to best optimise PPT compliance. While many of the compliance demands may be complex or confusing, VAT IT’s specialist team can provide a bespoke assessment that considers your company’s specific obligations and goals. 

Am I likely to have a plastic packaging tax obligation? 

HMRC estimates that the tax will affect around 20 000 importers and manufacturers in the UK.  

If you produce or import plastic packaging, it is important to carefully assess your company’s obligations. 

Take note that any company that produces or imports ten or more tons of plastic packaging over a 12-month period or within the next 30-days may have to register for PPT, even if it does not meet the threshold to pay the tax.

What is the impact of the PPT?

The plastic packaging tax rate is set at £200 per metric ton of plastic packaging. 

In addition, the tax creates new administrative obligations. If your company is liable for the PPT, you may need to register with HMRC and account for the tax. 

There are also record-keeping requirements. According to HMRC guidance, all companies that manufacture or import plastic packaging should keep clear records dealing with how much tax they should pay.  

Don’t risk noncompliance. Get a customised assessment from global compliance specialists.

VAT IT’s advisory team are available to thoroughly assess your obligations under the PPT rules and ensure you follow the most optimal supply chain strategies.

A complete PPT health check

The review will be led by one of the senior consultants in our specialist indirect tax team. It will highlight key risk areas for PPT across your supply chain and outline recommendations for anything that needs addressing. The assessment begins by carefully determining whether your business has any PPT liability. 

Our team applies a comprehensive analysis of your operations. We will:

  • Explore whether any PPT exemptions are available
  • Assess if credits or deferred payments apply
  • Provide a GAP analysis of any risk areas in reporting or compliance process
  • Assist with the completion and filing of any PPT returns on an ongoing basis
  • Provide support with recording keeping and due diligence requirements
  • Help mitigate penalties from historical non-compliance

A PPT assessment designed to fit your operations 

Following a complimentary discussion meeting, we will create a bespoke quote based on your company’s organisation and operations. To ensure you only pay for what you get, our fees are calculated on a time-spent basis. 

Considering the risks and potential costs of non-compliance, can you afford to ignore your PPT obligations? Get in touch with VAT IT for a free quote from the global compliance specialists.

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