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Plastic packaging tax consultation

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HMRC is consulting on draft Plastic Packaging Tax (General) Regulations 2021 which will set out detailed administrative requirements for the operation of the new plastic packaging tax (PPT) from 1 April 2022. The aim of the consultation is to ensure the regulations ‘deliver the policy correctly and effectively’.

The regulations provide detailed definitions, including the meaning of ‘substantial modification’ which establishes when a plastic packaging component is finished for the purposes of the tax (and therefore when it becomes chargeable). They also specify the evidence that businesses need to keep, set out how to weigh packaging and determine the recycled plastic content, and prescribe the administrative requirements (e.g. registration for the new tax and the requirement to make returns).

Alongside the draft regulations, HMRC has published several new guidance notes for manufacturers and importers explaining the following:

  • registration requirements: manufacturers and importers must register for PPT if they manufacture or import 10 tonnes or more of finished plastic packaging components over a 12-month period;
  • registering a group of companies for PPT: group companies can simplify the administration and payment of PPT by appointing a UK-established representative member of the group to submit returns and make payments on behalf of companies in the group;
  • completing the PPT return and how to correct errors in a previous return;
  • checking whether plastic packaging components are subject to PPT;

As announced at Autumn Budget 2021, Finance Bill 2022 includes a number of amendments to the PPT legislation in FA 2021.

Issue: 1552
Categories: News