UK Plastic Packaging Tax

Liability Boundary

Companies that manufacture or import ten or more tonnes of plastic packaging in a twelve month period must register for the tax. While paperboard cartons are generally exempt, any plastic coating or liner that exceeds the weight of the paper component could be subject to the charge. Multi material packaging is assessed based on the weight of the individual layers.

If the plastic portion is the heaviest single element, the entire component is treated as plastic for tax purposes. Businesses must obtain evidence from their suppliers to prove the recycled content of the plastic they use.

Compliance Burden

Accurate reporting requires a weighing process for every packaging format used by a company. Failing to maintain these records can result in heavy financial penalties and audits.