WHAT A WASTE! PLASTIC PACKAGING TAX

Just to let you know, all the statistics in this article were correct at the time of publishing. September 2022. Read on.

Concerns about sustainability and the future of the planet are high on the public’s agenda. Excess packaging has been an issue for years. Customers are becoming choosier about where to spend their money. Often not wanting to spend with companies who aren’t tackling sustainability issues, like packaging. Given the likely impact on their bottom line you’d think companies would be moving away from plastics and unsustainable materials. But you’d be wrong. So far less than 5% of liable businesses have registered for Plastic Packaging Tax.

WHAT THE RESEARCH SHOWS

Research by law firm Pinsent Masons show that less than 5% of liable business have registered for the tax.

The first Plastic Packaging Tax return was due on the 29^th July, so any business that missed this deadline and is liable to register, may be hit with fines for non-payment and possibly late registration.

HMRC said they expected to raise around £235m from the levy, but it’s unlikely now considering the shortfall in registrations.

WHO NEEDS TO PAY PLASTIC PACKAGING TAX?

Plastic Packaging Tax was introduced with effect from 1^st April 2022. It’s essentially a tax to try and help reduce the amount of single use plastic in business at a rate of £200 per tonne.

You need to register for the tax if you import or manufacture over 10 tonnes in a 12-month period, and then submit quarterly returns.

It affects more businesses than you think. Even if you don’t manufacture or import plastic yourself, you may still have Plastic Packaging Tax obligations under the legislation.

AFFECTED? WHAT DO YOU NEED TO DO

To avoid penalties, you should check whether you’re liable to register or to undertake any other requirements under the Plastic Packaging Tax legislation.

HMRC have said they are liaising with businesses to ensure they’re compliant with the Plastic Packaging legislation – we might see HMRC approaching businesses they would expect to be registered.

HMRC have provided lots of guidance and examples around the subject to help determine whether you need to register and outline your obligations. But, if you’re stuck, we’re here to help. Just send us an email or give us a call.