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Plastic packaging tax – are you ready?


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It’s been a while since the concept of a plastic packaging tax was first floated with the aim of making businesses reduce the amount of plastic packaging they use. Well it comes into effect from 1 April so are you ready? 

What is Plastic Packaging tax?

Plastic packaging tax is a new tax which aims to encourage businesses to use recycled plastic or other forms of materials to reduce plastic pollution.

The tax applies to company’s that manufacture plastic packaging or import plastic packaging into the UK and the plastic packaging contains less than 30% recycled plastic, it even includes packaging that is already filled.

This tax comes into effect from 1 April 2022 and businesses are required to fill in returns from this date.

Who does this affect?

This affects businesses based both inside and outside of the UK.

There’s no escaping. Certain record keeping obligations apply even if you manufacture or import less than the 10 tonne limit. There are also some exemptions.

What do you need to do?

If you’re unsure whether the plastic packaging tax will apply to your business, talk to us. Even if you don’t have to pay the tax, you’re still required to adhere to certain compliance obligations. We can help you understand what’s required.

And if I don’t do anything?

Well, penalties for non-compliance include a fixed penalty, and daily penalties for continued non-compliance. The legislation also makes it very clear that there is secondary, or joint and several liability in some cases, as well as potential criminal charges in the most severe cases

Other opportunities

R&D Tax Credits

It’s worth remembering that where there are challenges, change and innovation, there’s often a lot of research and development taking place. Take a look at our earlier blog which considers the potential for R&D tax claims that could come out of the move to more recycled content.

Sustainability Sussed

Good Business is good business. The drive for business sustainability has never been greater. People with purpose, working together to put planet before pure profit. Here at CP we’re building an online and real community of like-minded, successful, culturally aligned and collaborative firms who want to challenge the status quo. We don’t pretend to know all the answers but we sure want to be part of the solution. Why not join us where we’ll be openly sharing ideas and supporting each other across different sectors. Find out more here.


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