On this article, PKF Smith Cooper takes a better take a look at what companies have to know relating to the upcoming plastic tax that is because of are available on the first of April.
The surroundings, and the impact we’ve on it, is on the forefront of the minds of companies, shoppers and the Authorities. Consequently, the Authorities is keen for companies and shoppers to extend their use of recycled supplies over plastics, wherever potential, which has led to the creation of the Plastic Packaging Tax.
This tax comes into power from 1st April 2022 and applies a tax to some plastic packaging manufacturing and imports (or packaging for which plastic is the primary part).
The rationale behind this tax is to offer a transparent, financial incentive for companies to make use of recycled plastic within the manufacture of plastic packaging. In flip, that is predicted to stimulate elevated ranges of recycling and assortment of plastic waste, diverting it away from landfills or incineration.
What’s the plastic packaging tax?
The definition of “plastic packaging” is packaging that’s predominantly plastic by weight.
This tax has been deliberate since 2018 and applies to plastic packaging manufactured in, or imported into the UK, that incorporates lower than 30% recycled plastic. That is barely totally different for packing comprised of blended parts (comparable to cardboard and plastic). On this occasion, if the load of the plastic constituent is greater than the opposite parts, then the packaging falls throughout the scope of the tax.
Moreover, this is not going to apply to any plastic packaging which incorporates no less than 30% recycled plastic, or any packaging which isn’t predominantly plastic by weight.
The place the tax applies, it’s charged at £200 per metric tonne of packaging, and affected companies should register forward of time and begin submitting a particular quarterly tax return.
Am I affected by these modifications?
This impacts UK corporations however there’s excellent news for smaller companies. The brink is 10 tonnes a yr, so if the load of packaging you import or manufacture is beneath this weight throughout a 12-month rolling interval, the tax received’t apply.
As soon as a enterprise reaches the ten tonnes threshold inside a 12 month interval, they have to register for and begin making use of the tax within the following quarter.
Find out how to register for the plastic packaging tax?
To register for the tax on the HMRC web site, it’s possible you’ll want to offer the next particulars:
- Your corporation kind
- Your companies tackle and speak to particulars
- The date your corporation turned accountable for plastic packaging tax
- An estimate of how a lot completed plastic packaging you count on to fabricate or import within the subsequent 12 months
- A buyer reference quantity. This could possibly be your Company Tax Distinctive Tax Reference (UTR), Self Evaluation UTR (or Nationwide Insurance coverage quantity), Firm Reference quantity, or Charity Registration quantity. As soon as registered, you’ll be assigned a reference quantity that you need to use in correspondence.
Do I have to do something in my accounting system?
We advise that you simply test together with your accounting system supplier for specifics regarding your scenario. For Sage 200 customers, Sage has not but suggested of any formal actions or modifications that they’re planning for the system.
The place to search out extra info?
To seek out out extra details about this tax, together with its historical past, data you have to hold and tricks to put together, please consult with Gov.UK.
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