HMRC declare Plastic Packaging Tax rate increase
A year on from the introduction of the UK Plastic Packaging Tax (PPT), HMRC have declared the tax fee will increase from £200 to £210.82 per tonne for plastic packaging with less than 30% recycled content. The increase was announced as part of the Spring Budget 2023, and the rate of PPT will increase from 1st of April 2023 in line with the consumer Price Index. Producers will therefore first see the impact of price rise in tax returns during the Q1 2023/24 – July 2023.
HMRC have confirmed that any retrospective returns or claims for tax credits for periods before 1 April 2023 will also be calculated at the rate of £200 per tonne.
HMRC will likely continue to review guidance with support and feedback from key industry organisations and businesses, so businesses should aim to review guidance regularly. Key updates to tax guidance related to the definition and examples of Transport Packaging occurred last October and more recently HMRC confirmed that there is no mandatory requirement to show that PPT has been paid on invoices.
Many industry news outlets report there is still huge confusion within the supply chain over who is responsible to register and pay tax. Beyondly continue to support businesses throughout the supply chain with regards to PPT and have also found high uncertainty and misunderstanding with the legislation. At the end of September 2022, it was estimated only 2,600 business were registered with HMRC for Plastic Packaging Tax, which is significantly lower than HMRC’s initial predictions of 20,000 liable businesses. With joint and several liabilities producers should be cautious to complete due diligence checks with suppliers to ensure they are not part of a supply chain where PPT is unpaid.
If you would like support with PPT, Beyondly are on hand to help. Please get in touch with our solution team - firstname.lastname@example.org for more information.
Gov.UK Plastic Packaging Tax Summary - https://www.gov.uk/government/collections/plastic-packaging-tax
Circular. – Can the New PM Unpack the plastic tax revenue? - https://www.circularonline.co.uk/opinions/can-the-new-pm-unpack-the-plastic-tax-revenues/