The new Plastic Packaging Tax (PPT) came into effect from 1 April, with the first return covering the period to 30 June.

It is payable on plastic packaging components that contain less than 30% recycled plastic. However, the ICAEW noted that a firm is still required to register for PPT if it “expects to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days; or has imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022.”

The HMRC government gateway includes advice and guidance on who must register, and when, for the tax. 

For the purposes of PPT, all plastic is assumed to be made using non-recycled (virgin) material, unless there is evidence that recycled material has been used.

There are also specific requirements regarding companies that are part of a group. 

“Failure to comply with the requirements of PPT – including failure to register, file or pay a return – could lead to a fixed penalty of £500, with an additional daily penalty of £40 for each day the business continues to fail to comply,” the ICAEW noted. 

The British Plastics Federation has teamed up with EY to create an online Decision Tree tool for PPT, described as “a quick and simple way for companies to ascertain whether or not their products qualify for the plastics packaging tax”.

The BPIF also set up a hub with information and advice about the new tax earlier this year.