What Is Plastic Packaging Tax?
Plastic packaging tax is a tax that has been introduced by HMRC to tackle the recycling issues here in the UK. The tax is payable to HMRC at a rate of £200 per tonne of manufactured or imported plastic packaging products that do not contain at least 30% recycled content. Companies that manufacture or import over 10 tonnes of plastic packaging goods per year should register and keep records of PPT in accordance with HMRC guidelines.
Will I Pay Plastic Packaging Tax?
Now this is a tricky question… It all depends on who you are and where you sit on the supply chain of plastic packaging.
Manufacturers and importers that meet certain requirements laid out by HMRC will indeed be required to pay PPT directly to HMRC. A PPT return will be required to be completed quarterly and submitted to HMRC, similar to a VAT return. If any products are imported or manufactured that PPT is not applicable to, these products also need to meet certain testing requirements and will also need to be explanatory on your PPT return by the means of due diligence checks.
Although end users and resellers of plastic packaging will not be liable to pay for plastic packaging tax, it can fall to them if their suppliers have not accounted for it properly and/or the supply of the plastic packaging products is not traceable. This means that if your manufacturer or supplier has the correct documentation in place and the declaration of PPT has been done as it should have been, you will not be liable to pay any PPT to HMRC. Some manufacturers and importers may start to increase their prices to absorb the extra cost of the plastic packaging tax but you will not pay this to HMRC unless approached for an audit. Be sure to get your suppliers confirmations that they will be paying for this tax.
How will SR Mailing deal with Plastic Packaging Tax?
SR Mailing can assure you that you will not be charged an additional tax when shopping with us. PPT will be accounted, recorded and paid for by ourselves so please rest assured that if we are your only supplier, you have nothing to worry about! The prices displayed online or quoted by our sales representatives will have taken into account the PPT if applicable and therefore you will not be required to declare this at a later date. Our Director Kun Feng has issued a letter here to assure you of this.
What SR Mailing Products Does Plastic Packaging Tax Apply To?
Due to the nature of SR Mailing and the missions and visions we stand by, there are not many products that this tax will apply to. The products (correct at 1st April 2022) that will incur additional plastic tax are:
For any customers placing bespoke orders, confirmation of plastic packaging tax can be given on request.
What If I Have Any Questions About Plastic Packaging Tax?
If you have any questions about plastic packaging tax, be sure to ask your account manager or send us a message. We have 5* members of staff ready to respond!