Check if your clients are liable for the new Plastic Packaging Tax
Check if your clients are liable for the new Plastic Packaging Tax
The new Plastic Packaging Tax (PPT) came into effect on 1 April 2022, and HMRC is encouraging companies that manufacture or import plastic packaging to check if they are liable for PPT. They then have 30 days to register for the tax from the date they become liable.
HMRC said: “Although nobody needs to file a PPT return or pay the tax before July 2022 at the earliest, your clients may need to register for PPT before then.
“PPT has a 10-tonne registration threshold and there are two tests to check if your clients need to register. They must register if they’ve manufactured or imported 10 or more tonnes of plastic packaging since 1 April 2022, or they expect to manufacture or import 10 or more tonnes in the next 30 days”
GOV.UK contains worked examples of tests and calculations for Plastic Packaging Tax.
Guidance explains what plastic packaging your clients must include against the 10 tonne threshold.
HMRC said: “Plastic packaging already containing 30% or more recycled plastic must be included when determining whether your clients meet the 10 tonnes registration threshold.
“Once your client becomes liable for PPT, they will need to keep accounts and records to use as evidence when they complete their quarterly tax returns for PPT.”
For general information and support on Plastic Packaging Tax, visit the collection page on GOV.UK.