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HomeFinance and AccountingBusiness TaxationDo I need to register my business for Plastic Packaging Tax? ­­­

Do I need to register my business for Plastic Packaging Tax? ­­­

Plastic Packaging Tax
Image by VIVIANE M. from Pixabay

The tax applies to plastic packaging produced in or imported to the UK and does not contain at least 30% recycled plastic.

PPT is thought to affect around 20,000 businesses across a number of sectors, but is your business one of them? In this blog, leading company formation agent, 1st Formations, covers who needs to register for Plastic Packaging Tax and how to do so. Let’s get started.

Who needs to register for Plastic Packaging Tax?

Your business will be required to register for Plastic Packaging Tax if you:

  • Plan to import into the UK or produce in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days.
  • Have imported into the UK or produced in the UK 10 tonnes or more of finished plastic packaging components in the last 12 months.

The 10 tonnes of plastic packaging components can be a combination of manufactured and imported packaging.

Multinational businesses that do not manufacture in the UK could still find they are subject to the requirement to register if they export items to the UK through HMRC depending on the nature of the product and its immediate packaging.

If your business meets the above criteria, you’ll need to register and pay a tax of £210.82 per tonne.

How to register for Plastic Packaging Tax

It’s essential that your business registers for PPT within 30 days of meeting the 10 tonnes threshold in order to avoid any potential penalties. You can register online via GOV.UK using Government Gateway.

To complete the registration process, you’ll need to have a few details to hand. This includes the estimated weight of finished plastic packaging components that you:

  • expect to manufacture or import in the next 12 months or;
  • have already manufactured or imported over the last 12 months or;
  • expect to manufacture or import within the next 30 days.

Additionally, you’ll need to ensure you have the following information ready:

  • your business type
  • an up-to-date business address listed on Companies House, including the country of your business
  • the address and contact details of the person or business you’re registering
  • a customer reference number, which could be your company registration number (if you’re registering a company) your National Insurance number and Self Assessment Unique Taxpayer Reference, or a charity registration number
  • the Government Gateway user ID and password of the person or organisation you’re registering if you do not have a user ID, you can create one when you register

Are there any exemptions to the Plastic Packaging Tax?

Not every type of plastic falls under PPT regulations. Packaging categorised as primarily plastic won’t be subject to PPT as long as a minimum of 30% of the packaging’s weight consists of recycled plastic.

All varieties of recycled plastic, except for ‘scrap and regrind’ used within a production facility. This is included in the calculation for the 30% threshold of recycled plastic content.

Final thoughts

We hope that this post has helped clarify whether your business is liable for the Plastic Packaging Tax. If you’re feeling unsure, it’s always worth consulting the guidance provided by the GOV.UK website.

For more compliancy advice and valuable business insights, head to 1st Formations; the UK’s leading company formations agent.

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