Plastic packaging tax – who is liable

The Plastic Packaging Tax (PPT) came into force on 1 April 2022, and it’s one of those taxes that catches many UK businesses by surprise. If your organisation handles plastic packaging, you need to understand whether you’re liable and what that means for your bottom line. This guide walks through the key rules so you can establish your position clearly.

What is the Plastic Packaging Tax?

The Plastic Packaging Tax is an excise duty charged at £200 per tonne on plastic packaging that doesn’t meet a minimum recycled content threshold of 30%. It applies to manufactured plastic packaging and to imported plastic packaging materials, whether finished goods or components ready for filling.

HMRC introduced PPT to incentivise businesses to use recycled plastic instead of virgin material. From a practical standpoint, if you’re handling plastic packaging in the UK supply chain, you’re potentially in scope—regardless of your industry sector.

Who is liable to pay?

You’re liable to register for PPT if, over a 12-month period, your business manufactures or imports more than 50 tonnes of plastic packaging in total. This 50-tonne threshold is crucial: it’s the key trigger for liability.

The 50 tonnes applies to the combined weight of all plastic packaging you handle, not individual product lines. So if you’re importing 30 tonnes of plastic film and manufacturing 25 tonnes of rigid plastic containers, you’ve crossed the threshold and must register.

Importantly, the tax applies at the point where plastic packaging is manufactured in the UK or imported into the UK. If you’re importing finished goods in plastic packaging (for example, electronics or cosmetics), the importer is typically liable. If you manufacture plastic packaging or products containing it, you’re liable for the manufacturing stage.

There’s an exemption for packaging containing at least 30% recycled plastic content by weight. This is a significant incentive—if your plastic packaging meets that threshold, it falls outside the tax net entirely. Many businesses have restructured their supply chains to take advantage of this.

Registration and compliance

If you’re over the 50-tonne threshold, you must register with HMRC for PPT. Registration is straightforward through the HMRC online services portal. Once registered, you’ll receive a PPT registration number and must file returns quarterly.

PPT returns are submitted online via your HMRC account on the 19th of the month following the end of each quarter (April, July, October, and January). You’ll need to declare:

The total weight of plastic packaging manufactured or imported that quarter
The weight that was subject to tax (packaging below 30% recycled content)
The weight that was exempt (packaging at or above 30% recycled content)
The tax due, calculated at £200 per tonne

Payment is due when you submit your return. If you underpay or miss a return deadline, interest and penalties apply under standard HMRC rules.

Record-keeping and de minimis relief

Keep detailed records of all plastic packaging you manufacture or import. You’ll need evidence supporting your recycled content claims—supplier certifications, material specifications, or test reports. HMRC may ask to see these during compliance checks.

There’s a small de minimis relief: if your quarterly plastic packaging tonnage falls below a certain amount, you may not need to file a return that quarter. However, this doesn’t exempt you from registration if your annual total exceeds 50 tonnes—you still need to be registered and maintain records.

Getting the calculation right

The tax is payable on the net weight of plastic packaging (excluding any non-plastic components). If you’re unsure whether a material qualifies as plastic or how to calculate recycled content, HMRC publishes guidance on its website. When in doubt, it’s worth getting technical confirmation—particularly if your packaging is mixed-material or your recycled content claims are substantial.

Next steps

If you manufacture or import plastic packaging, your first question should be: do I exceed 50 tonnes in any 12-month period? If yes, register now if you haven’t already. If you’re borderline or unsure, tracking your tonnage carefully over the coming months will give you clarity.

The PPT landscape is still evolving, and HMRC regularly updates guidance. Staying on top of compliance now saves headaches later—and avoids penalties.

For tailored advice, contact Severn Accounting — we’re here to help.