What is Plastic Packaging Tax?
Plastic Packaging Tax (PPT) is a UK wide packaging tax, separate from packaging EPR fees, that came into effect on 1 April 2022. It applies to plastic packaging manufactured in, or imported into, the UK that contains less than 30% recycled plastic.
PPT has quickly become an important element of packaging regulation. For many businesses, the main challenges lie in understanding whether they fall within scope and ensuring they have the data and evidence required by HMRC. This article provides a practical overview of how the tax works, who must comply, and what to expect in the coming years.
Who must comply?
Businesses must register for PPT if they manufacture or import plastic packaging, whether filled or unfilled, and handle more than 10 tonnes of such packaging within any rolling 12-month period.
Once the 10-tonne threshold is met, businesses have 30 days to register with HMRC and must begin submitting quarterly tax returns.
Any plastic packaging that contains less than 30% recycled content must be reported on these quarterly returns.
Businesses must also keep detailed records for at least six years, including:
- Material composition and weight of each component
- Recycled content calculations and supplier certificates
- Production data for UK-manufactured packaging
- Import documentation, invoices and product specifications
- Methodologies for estimating data where exact records are not available
Maintaining accurate data is essential as HMRC may request evidence at any time
Packaging subject to the tax
To determine whether PPT applies to a packaging component, businesses must consider:
- Is the component classed as plastic?
- What is its intended function within the supply chain or for the end user?
PPT applies to two main types of packaging use:
- Packaging used in the supply chain, and
- Single-use consumer packaging
Where a component is made from multiple materials, businesses must determine:
- The total weight of the component, and
- The weight of each material within it
This establishes whether plastic is the predominant material.
When packaging is considered plastic
For PPT purposes, “plastic” includes any polymer-based material, even where additives or fillers are used.
Key points include:
- Unmodified cellulose-based materials (e.g., viscose) are not treated as plastic.
- Chemically modified cellulose materials (e.g., cellulose acetate) are treated as plastic.
- Additives such as dyes, fillers or calcium compounds are considered part of the plastic when assessing weight.
- Polymers marketed as biodegradable, compostable or oxo-degradable fall within the definition of plastic.
A component is classified as “plastic” if plastic is the predominant material by weight.
Businesses must retain evidence showing what materials and substances each component contains.
How is the plastic taxed?
PPT is charged per tonne of plastic packaging containing less than 30% recycled content. Rates are updated each year in line with CPI inflation.
Tax rates to date:
- £200.00 per tonne — from 1 April 2022
- £210.82 per tonne — from 1 April 2023
- £217.85 per tonne — from 1 April 2024
- £223.69 per tonne — from 1 April 2025
The business responsible for manufacturing or importing the packaging is liable for the tax.
What is the purpose of PPT?
The policy aims to:
- Encourage the use of recycled plastic
- Support higher collection and recycling rates
- Reduce reliance on virgin plastics
- Divert plastic waste away from landfill and incineration
- Drive more sustainable packaging design
In practice, PPT is intended to create a commercial incentive to use higher recycled content and support the UK’s transition to a more circular plastics economy.
Tax returns periods and deadlines
PPT returns must be submitted every quarter, detailing:
- Total weight of plastic packaging components manufactured or imported
- Amount containing less than 30% recycled plastic
- Any exempt packaging and supporting evidence
- The corresponding tax due
Returns are submitted via HMRC’s online system, and businesses must pay the tax by the deadline to avoid penalties and interest.
2026 tax return deadlines:
- 30th January (for Oct-Dec 2025)
- 30th April (for Jan-Mar)
- 31st July (for Apr-Jun)
- 30th October (for Jul-Sept)
Looking ahead: recent updates and upcoming changes
The government has confirmed that PPT rates will continue to rise in line with CPI inflation for 2026–27, maintaining pressure on businesses to integrate recycled plastic into their packaging.
A government consultation, scheduled for 2026, will explore the introduction of mandatory certification for mechanically recycled plastic used in packaging. This is intended to improve the integrity and traceability of recycled content claims and ensure robust evidence sits behind declarations made in PPT returns.
Additionally, from 1 April 2027, chemically recycled plastic will become eligible for meeting the 30% recycled content threshold, if it is allocated using a mass balance approach.
