UK Plastic Packaging Tax: How to prepare your business?

The new UK Plastic Packaging tax (PPT) applies to single-use plastic produced with less than 30% recycled content. Our first instalment (UK Plastic Packaging Tax: A Step to reducing plastic waste?) summarised key takeaways from the UK Plastic Tax. We now examine steps your business can take to prepare for the UK Plastic tax as it comes into effect from the 1^st of April 2022. Here’s what you can do to prepare your business.

Reduce single-use plastic and optimise your packaging

Review your current packaging and consider areas where packaging can be reduced or replaced. This could be achieved through the following:

• Tailor your packaging to the exact dimensions of your products.
• Remove excess single-use plastic packaging that is unnecessary.
• Research new packaging solutions
• Find alternatives to virgin single-use plastic.

Finding alternatives that are more environmentally friendly may take time but in the long-term could reduce costs through a per unit cost-saving. Some innovative packaging materials qualify for the Research and Development (R&D) Tax relief which provides an additional incentive.

ENGAGE YOUR SUPPLIERS

It may be worthwhile to engage your suppliers to ensure you are compliant with the new UK Plastic Tax laws. This is particularly relevant in cases where your company does not package products in-house. This may include requesting suppliers to transition to more environmentally responsible or compliant plastic packaging. The potential cost implications of the UK Plastic Tax can be minimised by engaging your suppliers, while simultaneously improving your environmental performance.

Monitor, control and report

The new UK Plastic tax will require documentation on an ongoing basis to ensure you are in alignment with the HM Revenue and Customs (HMRC) requirements. You will be required to have precise reporting on the weight and volume of virgin single-use plastic used. This ensures you will pay the correct levy if eligible for the tax. It is therefore essential to have a robust administration system in place to accurately monitor, control and report all PPT data. Equally important is to ensure the data is available for audit purposes if requested by the HMRC.

If your company qualifies for the UK plastic tax it should be a priority to reduce your use of single-use plastic and implement procedures to prepare in advance. If liable for the tax your business should register with HMRC, submit returns quarterly and make payments accordingly.

Don’t Waste assists clients by providing a unique waste management technology that is optimised for businesses. Our system works effectively to reduce all grades of waste, ensuring optimal recovery of plastic material for recycling.

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