Millions of tonnes of plastic waste is produced and imported into the UK every year and much of this takes the form of plastic packaging. The reduction of this waste has been a goal of the UK for some time; the government stating that they wish to be the first generation that leaves the environment in a better condition than it was found. The UK government set out a comprehensive 25 year environmental plan which aims to eliminate all avoidable plastic waste by 2042.
With such ambitious goals in place, the UK government has been using all of the tools at its disposal to make progress towards plastic reduction. One of the most powerful tools available to the government being fiscal incentives and taxation. There have been several methods to reduce plastic use via taxation and charges under consideration since as early as 2018. In parallel, funding has been made available through grants for innovative eco-conscious designs which reduce the amount of plastic packaging in use.
Most recently, the It is expected that this tax will have a considerable impact on all manufacturers trading in the United Kingdom.[/vc_column_text]
The new tax affects manufacturers and importers
The new packing tax is most likely to affect anyone that is either manufacturing or importing goods sold in plastic packaging as well as their consumers. In this case, plastic packaging is deemed to be packaging that is “predominantly plastic by weight.” Amongst the list is any polymer material with added additives or other substances. This includes polymer which are biodegradable, compostable and oxo-degradable. If the packaging is made of multiple materials but contains more plastic by weight, then it will be considered plastic. To avoid the over burdening of smaller manufacturers, the tax will only affect those that are importing or manufacturing over 10 tonnes per year. A guide to working out your products plastic weight can be found here.
The tax will also not affect plastic that is at least 30% recycled, further incentivising increased used of greener alternatives to plastic. Packaging which uses recycled plastic, however, should only do so under other regulations and food safety standards.
How to tackle the use of single plastics
Manufacturers must also ensure to keep records and accounts of the plastic use in order to file their plastic packaging tax return. Among the accounts which manufacturers are obliged to keep are a full breakdown of the weight of plastic packaging components finished or imported in each period. In addition, manufacturers have to track the weight of plastic packaging exported in the period on which the tax was deferred, a breakdown of the weight of any plastic packaging for which a credit is claim, and any adjustments or correction made to previous accounting periods. Manufacturers must also ensure to keep accurate records of any evidence of exceptions from the tax and the recycled plastic content if the packaging includes more than 20% of recycled plastic.
Manufacturers should consider phasing out the use of plastic packaging where possible and instead making use of the much greener, and largely tax exempt, recycled plastic or others. It is expected that this measure will be followed in the future with further fiscal incentivisation aimed at creating a greener and more sustainable manufacturing environment.
What manufacturers need to know
As a manufacturer, you must register if you:
- Expect to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days;
- Have imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since April 1, 2022. This will change on March 31, 2023, when you will need to look back over the last 12 months on the last day of the month.
How to register:
- You can register your plastic use at the following UK government website;
- At this site you can also claim a credit, defer payment, and complete your return.
Was this article helpful?
Check Obelis UK News page to keep up to date with the latest Medical Devices and Cosmetics market in the UK.
Robert Mcdonnell
Regulatory Affairs Department
24/06/2022
Are you an Medical Device or Cosmetic manufacturer wishing to market your devices on the UK market? Contact Obelis UK, your UK Responsible Person today!
References:
- HM Revenue & Customs. (2022). UK government guidance, Records and accounts you must keep for Plastic Packaging Tax. Retrieved on 24/06/2022 from https://www.gov.uk/guidance/record-keeping-and-accounts-for-plastic-packaging-tax
- HM Revenue & Customs. (2022). UK government guidance. Check which packaging is subject to Plastic Packaging Tax. Retrieved on 24/06/2022 from https://www.gov.uk/guidance/work-out-which-packaging-is-subject-to-plastic-packaging-tax#when-packaging-is-considered-plastic
- HM Revenue & Customs. (2022). UK policy paper; Introduction of Plastic Packaging Tax from April 2022 Retrieved on 24/06/2022 from https://www.gov.uk/government/publications/introduction-of-plastic-packaging-tax-from-april-2022/introduction-of-plastic-packaging-tax-2021
- HM Revenue & Customs. (2018). Tackling the plastic problem Using the tax system or charges to address single-use plastic waste. Retrieved on 24/06/2022 from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/690293/PU2154_Call_for_evidence_plastics_web.pdf
- Department for Environment. Food & Rural Affaris and the Rt Hon Michael gove MP. (2021). UK government Policy paper; 25 Year Environment Plan, ‘A Green Future: Our 25 Year Plan to Improve the Environment’, sets out what we will do to improve the environment, within a generation. Retrived on 24/06/2022 from https://www.gov.uk/government/publications/25-year-environment-plan