The Plastic Packaging Tax came into effect on 1 April 2022. It applies to plastic packaging manufactured in or imported to the UK that contains less than 30% recycled plastic content.

Who does PPT apply to?

You may need to register and pay PPT if you:

Manufacture plastic packaging in the UK, or
Import plastic packaging into the UK (whether filled or unfilled)

And you handle more than 10 tonnes of plastic packaging in any 12-month period.

What counts as plastic packaging? The plastic must be the single largest material by weight in the finished packaging. This includes bottles, tubs, trays, bags, films, and other containers.

Plastic Packaging Tax obligations

Tax on plastic packaging with <30% recycled content - applies only if manufacturing/importing 10+ tonnes annually

If you manufacture or import 10 tonnes or more of plastic packaging per year, you must register for Plastic Packaging Tax and pay £223.69 per tonne on packaging with less than 30% recycled plastic content (2025/26 rate).

Tax rate (2025/26): £223.69 per tonne
Threshold: 10 tonnes or more manufactured/imported annually
Exemption: Under 10 tonnes per year - no registration or tax
Recycled content threshold: 30% or more recycled plastic - exempt from tax
Effective date: April 2022 (rates updated annually)

What is 'plastic packaging' for tax purposes:

Packaging designed to contain, protect, handle, deliver, or present goods
Made from plastic or contains plastic (even if combined with other materials)
Includes: Bottles, pots, trays, films, bags, bubble wrap, protective packaging
Excludes: Packaging that is part of the product itself (e.g., tablet blister packs for medicine), packaging used for long-term storage (e.g., furniture covers), transit packaging returned to supplier

When tax applies:

Packaging contains less than 30% recycled plastic by weight
You manufacture plastic packaging in the UK
OR you import plastic packaging into the UK (filled or unfilled)
AND you exceed 10-tonne annual threshold

When tax does NOT apply:

Packaging contains 30% or more recycled plastic - fully exempt from tax
You manufacture/import less than 10 tonnes per year - below registration threshold
You export the packaging (export relief available)

How to calculate tax liability:

1. Weigh the plastic: Calculate total weight of plastic packaging manufactured/imported in quarter (in tonnes)

2. Check recycled content: Separate packaging with <30% recycled (taxable) from ≥30% recycled (exempt)

3. Apply rate: Multiply taxable tonnes by £217.85 (2024/25 rate) or £223.69 (from 1 April 2025)

Example:

Manufacturer produces 50 tonnes plastic packaging per year
30 tonnes contain 40% recycled content (EXEMPT - no tax)
20 tonnes contain 15% recycled content (TAXABLE)
Tax = 20 tonnes × £217.85 = £4,357.00 (2024/25)

Evidence requirements for recycled content:

Supplier certification confirming recycled content percentage
Third-party testing and certification (e.g., by accredited lab)
Chain of custody documentation tracing recycled material
Mass balance calculations if using mixed materials
HMRC may request evidence during compliance checks - inadequate evidence means packaging assumed <30% recycled
Future change: From 1 April 2027, pre-consumer waste (production scrap, off-cuts, regrind) will no longer count toward the 30% recycled content threshold

Import scenario: If you import finished products packaged in plastic (e.g., importing bottled drinks from EU), you are liable for tax on the plastic bottles/packaging if:

You import 10+ tonnes of plastic packaging per year, AND
The packaging contains <30% recycled plastic
You cannot assume imported packaging is tax-exempt - you must obtain evidence of recycled content from overseas supplier

Penalties for non-compliance:

Failure to register: Percentage-based penalty on potential lost revenue (0-100% depending on behaviour). Criminal offence for serious non-compliance: up to 12 months imprisonment plus fine up to £20,000 or 3 times the tax lost
Late returns: £100 (first late return), £200 (second), £300 (third), £400 (fourth+ within 12 months). Additional penalties: greater of 5% tax owed or £300 at 6 months overdue, and again at 12 months overdue
Late payment: 5% penalty on outstanding amount initially, plus additional 5% at 5 months overdue, and 5% at 11 months overdue. Interest charged at 8.00% per year (from August 2025, rate varies with Bank of England base rate plus 4%)
Inaccurate returns: Penalties based on potential lost revenue - up to 100% for deliberate and concealed errors

Sector-specific impacts:

Food & drink: High impact - bottles, pots, trays, films. Major brands reformulating packaging to reach 30% recycled content.
E-commerce/retail: Protective packaging, mailing bags, bubble wrap - often imported, triggering liability.
Manufacturing: Transit packaging, pallet wrap - exemption if returned/reused by supplier.
Hospitality: Takeaway containers, cups, cutlery - usually under 10-tonne threshold unless large chain.

Legal basis: Finance Act 2021, Schedule 10 (Plastic Packaging Tax). Statutory Instrument 2022 No. 117 (Plastic Packaging Tax Regulations).

Official source: gov.uk/guidance/plastic-packaging-tax

The 30% recycled content threshold

The key threshold is 30% recycled plastic content. If your packaging contains 30% or more recycled plastic, it's exempt from the tax (though you may still need to register and report).

What counts as recycled?

Pre-consumer recycled content (manufacturing waste reprocessed)
Post-consumer recycled content (used packaging collected and reprocessed)
Both mechanical and chemical recycling count

Evidence requirements

You must be able to demonstrate recycled content claims. This means:

Certificates from suppliers
Chain of custody documentation
Mass balance accounting (where used)
ISCC or equivalent certification can support claims

Registration and returns

When to register

You must register within 30 days of exceeding or expecting to exceed 10 tonnes of plastic packaging in any rolling 12-month period.

What to report

Quarterly returns showing:

Total plastic packaging manufactured/imported (tonnes)
Amount with 30%+ recycled content (exempt)
Amount with less than 30% recycled content (taxable)
Any other exemptions claimed
Tax due

Deadlines

Returns and payment due 1 month after the end of each quarter.

Tax rate 2025-26: £223.69 per tonne (increased from £217.85 in 2024-25)
Registration threshold: 10 tonnes of plastic packaging in any 12-month period
Recycled content threshold: 30% or more recycled plastic = exempt from tax
Filing frequency: Quarterly returns, due 1 month after quarter end
Record keeping: 6 years for PPT records
Late registration penalty: Calculated as percentage of 'potential lost revenue' (PLR) - varies based on taxpayer behaviour (unprompted disclosure vs deliberate concealment)

Calculate plastic packaging handled

Track all plastic packaging you manufacture or import. Include filled and unfilled packaging.
Determine if registration required

More than 10 tonnes in any 12-month period triggers registration. Monitor cumulative totals.
Assess recycled content

Work with suppliers to understand recycled content in your packaging. 30%+ is exempt.
Gather evidence for recycled content

Supplier certificates, chain of custody documents, mass balance records.
Register if required

Register within 30 days of exceeding threshold. Use HMRC online service.
Submit quarterly returns

Report packaging manufactured/imported, recycled content, and tax due.

Business Context Testing

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Guvnor

Plastic Packaging Tax

Who does PPT apply to?

The 30% recycled content threshold

What counts as recycled?

Evidence requirements

Registration and returns

When to register

What to report

Deadlines

Calculate plastic packaging handled

Determine if registration required

Assess recycled content

Gather evidence for recycled content

Register if required

Submit quarterly returns

Compliance Assistant

🧪 Business Context Testing

◉ Content Graph

Who does PPT apply to?

The 30% recycled content threshold

What counts as recycled?

Evidence requirements

Registration and returns

When to register

What to report

Deadlines

Calculate plastic packaging handled

Determine if registration required

Assess recycled content

Gather evidence for recycled content

Register if required

Submit quarterly returns

Related guides in Plastic Packaging Tax

Business Context Testing

Content Graph