Summary – Plastic packaging tax

To encourage the use of recycled materials, from 1 April 2022, the UK Government is introducing a tax on the manufacture or import of plastic packing with less than 30% recycled content. This is known as the plastic packaging tax.

The threshold is 10 tonnes a year, so if the weight of packaging you import or manufacture is below this weight across a 12 month rolling period, the tax won’t apply.

Once the business reaches the 10 tonnes threshold within a 12 month period, they must register and start applying the tax in the following quarter.

What do I need to do?

To prepare for the new tax, we recommend you:

• Get familiar with the legislation details and speak to your suppliers to assess whether your business is affected
• Consider switching to recycled materials so the tax doesn’t apply
• If the tax will apply to you, ensure you register with HMRC and start putting processes in place to ensure your business is compliant

To learn more visit the government plastic packaging tax advice page.

Sage 50 Accounts doesn’t currently have the ability to support Plastic Packaging Tax in any capacity, including but not limited to records and calculations. We recommend you keep detailed records outside of Sage 50 Accounts. This should include doing a review of tax treatment to apply to products you are importing or manufacturing within the UK, to understand if they are applicable to plastic packaging tax.

Further Information

If you have any questions about this or need assistance, then please contact the GCC Group Support Team on 0345 260 1151 or servicedesk@gccgroup.co.uk

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