From 1st April 2022, the UK government is introducing a new plastic packaging tax (PPT) and it’s going to affect UK businesses across many industrial and retail sectors. This month, the team at Weightron is taking a detailed look at this new tax: what it is, who it affects – and how our Itemised Waste Management system (iWM) can help you comply with its requirements.

 

What is the plastic packaging tax?

As part of the government’s drive to increase the use of recycled plastic in plastic packaging (and therefore increase the demand for recycled plastic, while also stimulating the recycling and collection of plastic waste), the new tax will target plastic packaging that contains less than 30% recycled plastic.

 

Who is liable for the plastic packaging tax?

The tax will be applied to UK manufacturers and importers of plastic packaging, regardless of whether it is filled (e.g. it contains products such as food or drink) or not. For imported plastic, the tax will be payable by the person on whose behalf it is imported. 

Registration for PPT will be required even if a business meets the 30% recycled content threshold and does not need to pay any tax. 

Businesses that manufacture or import less than 10 tonnes of plastic packaging a year will be exempt from the new tax. However, if you come in under that weight, you will still need to register and monitor your usage in order to demonstrate that you’re not liable.

For those liable, the tax rate will be £200 per tonne.

 

What is classed as plastic packaging?

Plastic packaging is defined as packaging that is predominantly plastic by weight. Packaging that contains at least 30% recycled plastic will not be subject to the new tax. Plastic packaging made of multiple materials of which plastic is not proportionately the heaviest when measured by weight will also be exempt, as will plastic packaging manufactured or imported for use in the immediate packaging of human medicines.

 

How to work out the weight of packaging for Plastic Packaging Tax

Companies will be required to keep detailed and accurate records of the amount (by weight) of plastic products they produce or import. 

This can appear to be a daunting prospect. Fortunately, Weightron Bilanciai’s Itemised Waste Management system (iWM) is the perfect, user-friendly tool to keep track of your plastic packaging usage. Featuring a legal-for-trade weighing system (BS EN45501), the iWM has been designed to weigh and record multiple product streams. The clear, touchscreen weight terminal makes it easy to use, guiding the user quickly through the weighing process.  

Our iWM can be used to compile full traceability records and, because it can also be integrated with your existing management software – as well as working in tandem with Sage, SAP and other financial software – it simplifies the tracing and recording of your plastic usage for tax liability.

Don’t get caught out by the new plastic packaging tax. Weightron’s iWM makes it easy for you to declare plastic packaging usage without devoting large amounts of your time, letting you get on with the important task of running your business.

For more information on our Itemised Waste Management system, and how it can help you meet your legal requirements under the new UK plastic packaging tax legislation, get in touch with the team at Weightron Bilanciai today.