What is the New Plastic Tax for Businesses Starting this April?
The UK Government has implemented a new Plastic Packaging Tax (PPT) starting 1 April 2022 for businesses in the UK or overseas that produce or import certain plastic packaging to the UK.
The businesses that will be affected by the new tax will be importers or producers of over 10 tonnes of plastic packaging per year and where materials do not contain at least 30% recycled plastic. It will not apply to plastic packaging if it contains at least 30% recycled plastic.
What can businesses do so that they don’t need to pay this new tax? Look into alternatives to replace plastic packaging that is less than 30% plastic. Nowadays there are many alternatives to plastic. The tax will also apply to consumers who buy plastic packaged goods.
We know that there is going to be an ongoing pressure on businesses in the coming years to try and adopt more environmentally friendly policies, whether they come from government mandated taxes or the simple pressure on businesses to show that they are taking environmental issues more seriously. But we believe this could be too much for some small businesses that are already struggling from rising costs.
For more information contact your Fin-eX Outsourcing accountant. Fin-eX Outsourcing has been helping businesses for nearly 12 years across the UK in different sectors and businesses of all sizes. If you haven’t joined us and are currently looking for an accountant, get in touch today.
How can I start preparing?
- Start thinking about your strategy for dealing and complying with the tax and how it impacts your wider packaging strategy now.
- Consider new packaging solutions and start working with suppliers to manage your exposure to the tax.
- Design your monitoring, control and reporting processes.
- Keep precise records of the weight of plastics used for each item sold so plastic volumes can be calculated for returns.
- Ensure a robust audit trail for recycled material use.
Fin-eX Outsourcing Accountants for Business
About Fin-eX Outsourcing Accountants for Business
Established in 2010 to provide accounting outsourcing services a fixed, free of any obligations, through franchised accountancy practices. Our proven management systems and the ongoing support and training provided to all Fin-eX Outsourcing.
By doing more than just crunching numbers. By providing business advice and creating a solid relationship with our clients, we provide the services that has seen us become the only nationwide network of qualified accountants in the UK.
If you have any further questions, please do not hesitate in contacting Fin-eX Outsourcing.