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What will happen to the revenue from the Plastic Packaging Tax

With the UK Plastic Packaging Tax (‘PPT’) now here, we answer some of the most commonly asked questions we hear from other businesses in the UK.

What actions should we take now to implement the UK Plastic Packaging Tax?

The UK Plastic Packaging Tax will need the implementation of new systems and procedures to collect the data required to show compliance and assess obligations. Implementing these new operational components into your organisation will take time, and if you haven’t already, you should start thinking about it immediately.

Many organisations have begun their journey but have not included all of the essential stakeholders or critical data points. The following are the actions you should be performing right now:

  • Assessing the impact of PPT on your business
  • Assessing supply chains to determine the affects and who is responsible 
  • Making any required contract and pricing changes 
  • Engaging with your customers and suppliers 
  • Reviewing current data collection and reporting capabilities to identify any gaps that need to be closed in order to comply with PPT 
  • Reporting obligations implementing the necessary changes to systems to enable necessary data collection and reporting

What are the reporting requirements of the UK Plastics Packaging Tax?

Businesses must file a quarterly return to comply with the UK Plastic Packaging Tax. The reporting periods are as follows:

  • April 1 to June 30
  • July 1 until September 30
  • October 1 to December 31,
  • January 1 to March 31

Each return will require weight information for:

  • chargeable plastic components manufactured or imported by the company
  • non-chargeable plastic components manufactured or imported by the company
  • Where the direct export criterion is not satisfied, chargeable plastic components must be used
  • chargeable plastic components manufactured or imported that meet the direct export criterion
  • Plastic components are exempt because they meet the necessary 30% recycled content requirement
  • Plastic parts are excluded since they are utilised in medicine

Returns must be filed, and any outstanding tax liabilities must be paid by the last working day of the month after the end of the applicable accounting period. Businesses that compute a zero liability must nevertheless file quarterly returns.

It is not yet clear what format you must give the data in. You might use a data table system (similar to that for Producer Responsibility Obligations).

What if I don’t pay the UK Plastic Packaging Tax?

Failure to comply with the Plastic Packaging Tax may result in both civil and criminal consequences. These penalties may occur if you fail to register, file returns, or pay any liabilities.

There is a £500 penalty if an organisation fails to meet any of these responsibilities. There is an additional daily penalty of £40 for each day after the first that the organisation continues to default.

The sole defence to these penalties is a reasonable explanation for the failure. Reasons such as a lack of finances or cashflow issues do not qualify.

There you have it, the most common FAQs for the Plastic Packaging Tax. If you have any questions surrounding the tax, please don’t hesitate to contact us.

Tams Packaging is happy to provide any advice regarding printed cardboard packaging.

If you’re looking for a Cardboard Box Printers in the UK, make sure to check out our website and get in touch. Someone from our team would be happy to take you through our packaging printing process.