Will your business Pack a Punch for the environment in 2022: or be sent Packing?
Do you turn over more than £2m of plastic packaging each year, or over 10 tonnes of the stuff? If so, then get clued up on the government's new Plastic Packaging Tax that could affect your business from the 1st April 2022.
Who will be affected?
All UK businesses manufacturing or importing "PP" (plastic packaging), as well as their UK customers, or consumers buying PP, or goods incorporating PP, where they contain less than 30% recycled plastic. The government's rationale is to provide a clear economic incentive in the use of recycled material in the manufacture of PP. Additionally, this should divert plastic waste from incineration or landfill and, adversely, stimulate higher levels of plastic waste collection and recycling. Should businesses choose to pass on the extra cost to the individual, this is expected to be negligible against the value of the actual goods purchased.
HMRC is investing heavily in this new programme; whilst approx. 20,000 UK manufacturers and importers will be affected. There are one-off costs for businesses concerned, including registration with HMRC, training, and reporting; with a qualifying threshold of >10 tonnes of PP manufactured or imported into the UK p.a.
Quick fact check
- The new tax aims to increase the use of recycled content in plastic packaging by 40%
- Carbon savings estimated at 200,000 tonnes in 2022 to 2023
- £200 per tonne tax rate: if content is less than 30% recycled plastic
- Civil and criminal penalties for failure to register / file returns / pay the Plastic Packaging Tax
Many large businesses will be impacted financially by the new tax, not only in charges but also due to increased administration. Nevertheless, plastic waste is a global crisis that we, as consumers, need to grasp with both hands. Will you be ahead of the pack? Ultimately, don't we all want to be on David Attenborough's team?
Further info can be found on the gov.uk website here
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