globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload |
20 April 2022 UK Tax Authority issues further guidance on UK Plastic Packaging Tax The United Kingdom (UK) Tax Authority, Her Majesty’s Revenue and Customs (HMRC) has contacted businesses with a reminder that the UK’s new Plastic Packaging Tax (PPT) came into force on 1 April 2022. The message provides the latest information together with relevant links.
Businesses importing plastic packaging into the UK (including filled packaging) need to check who is responsible for complying with and paying PPT. This is unlikely to be the overseas supplier. For example, a UK-based retailer imports goods from a German food manufacturer; the retailer is the consignee and in control of the import, so it must register for the tax if it passes the 10-ton registration threshold. If a business imports finished plastic packaging components using incoterms, it should agree with the other business who is responsible for including the details on its PPT return and paying the tax. Two step-by-step documents are available to assist businesses in understanding the tax and what plastic packaging products are in scope. These now provide additional clarity for importers of plastic packaging: Guidance for PPT is available at HMRC’s collection page. This is regularly updated to address frequently asked questions. Recent changes include: The registration and group registration guidance pages have been amended to include links to the start page of the IT service The PPT force of law guidance is now available. This provides the necessary legislative provision for the detailed administrative arrangements of the tax that have already been set out in guidance elsewhere, such as standard weighing methods The recycled plastic and reprocessing guidance has been amended to make it clear that pre-consumer plastic can be included as recycled material where it needs to be reprocessed in order to be used The link for businesses to make complex inquiries to HMRC where the answer isn’t covered in the guidance has been added to the Plastic Packaging Tax collection page and Plastic Packaging Tax: steps to take
Document ID: 2022-5409 |