Businesses in the UK that manufacture or import plastic packaging may need to register for and pay the Plastic Packaging Tax if they handle an annual volume above the defined threshold.
The tax applies where packaging components are predominantly plastic and contain less than 30 % recycled content. The rules have recently been clarified around registration timing, thresholds and tax rates.
Who is responsible for the tax liability
The principal liable parties under the tax regime are:
- Businesses that manufacture plastic packaging components in the UK — defined as performing a production process (such as extrusion, laminating or printing) on plastic materials or pre-made plastic inputs.
- Businesses that import plastic packaging components into the UK, whether filled with goods or empty.
- The liable person is the business that carries out the last substantial modification to the packaging before it is filled or placed on the UK market. That may be a manufacturer, or an importer, depending on the supply chain.
What triggers registration and tax payment
You must register for the tax and pay it if:
- You manufacture or import in the UK 10 tonnes or more of the relevant plastic packaging components during the past 12 months (or you expect to do so in the next 30 days).
- The packaging is predominantly plastic by weight and contains less than 30 % recycled plastic.
Recent updates include:
- For the 12-month look-back test, you must now count back 12 months from the last day of the month, rather than from 1 April 2022.
- The rate of tax rises over time: for example, it was set at £200 per tonne from 1 April 2022, then increased to £210.82 per tonne from 1 April 2023, to £217.85 per tonne from 1 April 2024, and to £223.69 per tonne from 1 April 2025.
Even if a business uses packaging that contains 30 % or more recycled content (and so is exempt from the tax payment), the volume of packaging still counts towards the 10-tonne threshold for registration.
If you import or manufacture less than 10 tonnes, you may not be required to register and pay, but you must keep sufficient records to show you are under the threshold.
Key practical and compliance considerations
Several additional points affect whether and how the tax must be handled:
- Businesses must register within 30 days of becoming liable (i.e., when they meet the threshold either by the look-back test or forward 30-day test).
- Even if packaging is exempt (30 %+ recycled content or other exemption), the business must still monitor volumes and submit returns if registered.
- Businesses that purchase packaging from UK suppliers and do not carry out the last substantial modification will generally not be liable. However, they must ensure their supplier has paid the tax or have due diligence, because they may carry secondary liability if their supplier fails to comply and they knew (or should have known).
- Records must be maintained and quarterly returns submitted for registered companies. The data should show weights, recycled content, exempt items and any exports of packaging.
- The tax is designed to incentivise the use of higher recycled content in plastic packaging and reduce waste to landfill or incineration.
Plastic Packaging Tax liability checklist
Use this step-by-step list to assess whether your business must register for and pay PPT.
1. Identify whether you handle plastic packaging
a. Do you manufacture plastic packaging components in the UK?
This includes shaping, moulding, extrusion, laminating, printing or any other substantial modification.
☐ Yes ☐ No
b. Do you import plastic packaging components into the UK?
This includes filled or empty packaging.
☐ Yes ☐ No
If you answered No to both, you are not liable for PPT.
If you answered Yes to either, continue.
2. Check if the packaging is within scope
a. Is the item predominantly plastic by weight?
☐ Yes ☐ No
b. Does it contain less than 30% recycled plastic?
☐ Yes ☐ No
If you answered No to (a), the packaging is out of scope.
If you answered Yes to (a) and (b), it is in scope for PPT.
If the packaging contains 30% or more recycled content, it is tax-exempt, but still counts towards the registration threshold.
3. Measure your total volume
Do you manufacture or import 10 tonnes or more of plastic packaging components over:
- the last 12 months, or
- the next 30 days (expected)?
☐ Yes ☐ No
If Yes, your business must register for PPT.
If No, you do not have to register but must keep evidence showing you remain under the threshold.
4. Determine who is liable in your supply chain
Are you the business that performs the last substantial modification before the packaging is supplied, filled or exported?
☐ Yes ☐ No
If Yes, you are the liable party.
If No, liability normally falls on the business that carried out the final substantial modification.
Be aware of secondary liability rules:
If you buy packaging but knew, or should have known, that the supplier did not comply with PPT, HMRC may hold your business liable.
☐ I have due-diligence checks in place
☐ I need to strengthen my due-diligence process
5. Exemptions checklist
Tick any that apply:
☐ Packaging used for licensed human medicines
☐ Packaging permanently recorded as set aside for export
☐ Transport packaging used around imported goods
☐ Packaging with a significant non-plastic function (e.g., toolboxes, inhalers, etc.)
If one of these applies, you may not need to pay PPT on those items, but you may still need to count their weight toward the 10-tonne threshold.
6. Compliance requirements
If you are liable:
☐ Register for Plastic Packaging Tax via HMRC
☐ Submit quarterly PPT returns
☐ Keep detailed records showing:
— Weight of packaging components
— Recycled content evidence
— Exports
— Exempt items
— Supplier due diligence
