Plastic packaging tax (PPT) was introduced in the UK on 1 April 2022 by FA 2021. This new tax applies to plastic packaging being manufactured, or imported into the UK, that does not contain at least 30% recycled plastic. HMRC has estimated that PPT will generate £235m in revenue from the first year and that potentially more than 20,000 businesses would be affected. Despite this, wider statistics record that only 992 UK business registered for PPT within the first month, which suggests that there is still confusion among taxpayers as to whether they are liable or not. Given the potential penalties and the risk of criminal prosecution in the event of non-compliance, businesses should address these areas as soon as possible, seeking professional legal advice where they are unsure.
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Plastic packaging tax (PPT) was introduced in the UK on 1 April 2022 by FA 2021. This new tax applies to plastic packaging being manufactured, or imported into the UK, that does not contain at least 30% recycled plastic. HMRC has estimated that PPT will generate £235m in revenue from the first year and that potentially more than 20,000 businesses would be affected. Despite this, wider statistics record that only 992 UK business registered for PPT within the first month, which suggests that there is still confusion among taxpayers as to whether they are liable or not. Given the potential penalties and the risk of criminal prosecution in the event of non-compliance, businesses should address these areas as soon as possible, seeking professional legal advice where they are unsure.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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