Planning Ahead

Changes to invoicing

If you’re responsible for accounting for the tax as the manufacturer or importer of plastic packaging, the requirement to include a statement with your invoice that the tax has been paid, which was due to commence in April 2022, will be delayed.

You are encouraged to make the Plastic Packaging Tax you have paid visible to your business customers, and work with them to try and increase the amount of recycled plastic used wherever possible. Further information about this requirement will be provided in due course.

Prepare if your business is based outside the UK

If you are a non-resident taxpayer that imports more than 10 tonnes of plastic packaging in a year (which means that this packaging is imported into the UK on your own behalf), including plastic packaging that contains more than 30% recycled plastic or is exempt from the tax, you will still need to register and account for any tax due. If you import less than 10 tonnes of plastic packaging in a year, you will still need to keep some records to show this.

If the person on whose behalf plastic packaging is imported into the UK does not account for the tax, including through fulfillment houses, businesses in the supply chain may be found to be secondarily or jointly and severally liable for any unpaid tax.

Consider if you are exporting goods that are liable for the tax

If your goods are intended for export, you can defer paying the tax for up to 12 months from the point of manufacture or import. You will not have to pay the tax if the goods are exported within that 12-month period. You may also be able to credit the tax you have become liable for, where packaging is exported.

You should make sure that you have sufficient record-keeping systems in place to support a claim to defer the tax on goods intended for export or to ensure that a credit can be claimed if the goods are subsequently exported by someone further down the supply chain.