Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 2, 2023
2023-5252

UK packaging waste regulations are effective as of 28 February 2023

  • On 28 February 2023, The Packaging Waste (Data Reporting) (England) Regulations 2023 came into effect.

  • These Regulations require producers of packaging to collect and report data on the amount and type of packaging that they place on the market in England. This data is required to calculate the fees that these producers will be required to pay to cover the cost of managing this packaging as part of the Extended Producer Responsibility (EPR) for packaging scheme which is planned to start in 2024.

  • This development is significant as EPR affects businesses from across the packaging supply chain including, importers, distributors, and online marketplaces.

On 28 February 2023, The Packaging Waste (Data Reporting) (England) Regulations 2023 came into effect.1

EPR for packaging will require “producers” of packaging to take responsibility for the environmental impact of the packaging they supply by requiring them to pay for the collection and disposal costs of this packaging when it becomes waste. This measure aims to provide a financial incentive for producers to reduce the amount of packaging they supply and to improve the recyclability of their packaging.

Producers will be required to pay an EPR fee to local authorities (LAs), via a Scheme Administrator (SA), based on the amount of packaging they have supplied. The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2023, which will contain provisions for the introduction of EPR, will not be in force until December 2023.

The provisions in the Packaging Waste (Data Reporting) (England) Regulations 2023 will require producers in England to collect and report their packaging data from March 2023 (or from January, if they have this data). This data will be required to calculate the EPR fees that producers will pay and is therefore crucial for enabling the full implementation of EPR.

Under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007, producers with an annual turnover of £2 million, who handle more than 50 tons of packaging each year, are required to report data on the amount of packaging they recycle.

More detailed information on the amount and type of packaging that is placed on the market by producers is required to calculate the EPR fees that producers will pay once the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2023 are in force which is expected in 2023.

These new regulations will require producers with an annual turnover of £2 million, who handle more than 50 tons of packaging each year, to report data on the amount and type of packaging they supply. It will also increase the frequency of this reporting from once to twice per year. In addition, it will create a new “de minimis” threshold, whereby producers with an annual turnover of £1 million, who handle more than 25 tons of packaging per year (but who do not surpass the “upper” threshold), will be required to collect (but not report) this data.

This development is significant as EPR affects businesses from across the packaging supply chain including, importers, distributors, and online marketplaces.

The scope of the regime goes beyond that of the UK Plastic Packaging Tax by impacting a wider range of materials.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (United Kingdom), London

_________________________________________

Endnotes

  1. SI 2023/219 The Packaging Waste (Data Reporting) (England) Regulations 2023,
 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more