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Plastic packaging tax

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HMRC has published a new policy paper on plastic packaging tax to help businesses that manufacture or import plastic packaging to prepare for the tax. The new tax, introduced in Part 2 of Finance Bill 2021, will apply to plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30% recycled. The tax will come into effect on 1 April 2022 and the rate of tax will be £200 per metric tonne of plastic packaging.

Businesses which manufacture or import 10 or more tonnes of plastic packaging over a 12-month period must register for the tax. The guidance provides more information on:

  • registration requirements, including the online system that will be available from April 2022;
  • record-keeping systems and invoicing requirements; and
  • implications for non-UK businesses and exporters of packaging.

More guidance and secondary legislation are expected later in 2021.

Issue: 1531
Categories: News