The Plastic Packaging Tax
As you will be aware the Plastic Packaging Tax (PPT) comes into effect in the United Kingdom from 1st April 2022.
The HMRC have defined the Policy Objective as:
‘The aim of the tax is to provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will create greater demand for this material. In turn this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.’
This new tax will apply to plastic packaging manufactured in, or imported into, the UK that does not contain at least 30% recycled plastic. The tax rate that will apply to plastic packaging that falls within the scope of taxation will be £0.20p per Kilo (£200 per Tonne)
Tungate supply a wide range of products for numerous applications some of which would fall into the scope of PPT eligibility, and others that would be exempt. Using historic customer records/data and customers specific applications we have been able to determine in most cases products and applications would be included in PPT.
It is our intent to include the PPT to all products that we believe fall into the scope of the Plastic Packaging Tax, by adding the PPT (£0.20p per kilo) to products that we currently supply, this will be shown on invoices as follows Net PPT Kgs @ PPT (£0.20p per kilo) = £ + VAT
VAT is added to PPT.
If you feel that that the products Tungate supplies you don’t fall under the PPT please let us know as soon as possible,
We appreciate that there may be errors as our collective interpretation of HMRC guidance may differ and we learn to assimilate any new processes into our organisation, rest assured we will be tracking and monitoring products we deliver to your organisation.
There is a large amount of public-domain material available to help you to understand and implement any eventual obligations that you may incur as a result of the Plastic Packaging Tax and we offer the following source of additional information.