April 20, 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.
PPT returns, registration and records
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:
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (United Kingdom), London