The UK Plastic Packaging Tax (PPT) was introduced in April 2022 and applies to plastic packaging components that do not contain at least 30% recycled plastic content. If your business manufactures or imports plastic packaging, you either need to understand your liability — or understand why you don't have one.
What PPT Applies To
The tax applies to plastic packaging components: products that are made predominantly of plastic and are designed for use in the supply or packaging of goods. This includes:
- Plastic bottles and containers
- Plastic bags and pouches
- Plastic trays and pots
- Plastic film and wrapping
- Plastic caps, closures and lids (which are treated as separate components from the container)
- Composite packaging components where plastic is the main material by weight
It does not apply to packaging with 30% or more recycled plastic content — this is the key threshold. Components meeting this threshold are exempt from the tax regardless of total plastic content.
Who Pays
The tax falls on:
UK manufacturers of plastic packaging: if your business manufactures finished plastic packaging components in the UK, you're responsible for the tax.
UK importers: if you import plastic packaging components into the UK — including packaging that's filled with goods (your product comes packaged in plastic), empty packaging, or packaging components used in your own manufacturing — you're in scope.
The tax applies to components at the 10-tonne threshold: if your business manufactures or imports less than 10 tonnes of plastic packaging per year, you don't have a tax liability (though you may still need to register).
The Tax Rate
The rate has increased since introduction. As of April 2024, PPT is £217.85 per tonne. Given that packaging items can weigh a few grams each, the per-unit impact seems small — but across significant volumes it adds up.
For a business importing, say, 50 tonnes of plastic packaging per year that doesn't meet the 30% recycled content threshold, the tax liability is approximately £11,000 per year. This is a real cost that should be visible in your packaging economics.
The Recycled Content Route
The primary way to eliminate PPT liability is to specify packaging components with at least 30% recycled plastic content. Many plastic packaging manufacturers now offer recycled content options — typically rPET (recycled PET from collected bottles) or rHDPE.
You need to be able to evidence that your packaging meets the 30% threshold. Certificates of recycled content from your supplier, and retention of those certificates, form part of your compliance documentation.
Recycled plastic content typically costs more than virgin plastic per tonne. The question is whether the premium exceeds the PPT saving — at current rates, the economics often favour the switch, particularly for higher-volume packaging items.
Interplay With EPR
PPT and EPR for packaging are separate obligations that operate in parallel. EPR applies to producers and importers of all packaging types, not just plastic. PPT is plastic-specific.
Both have data reporting requirements. If you have reporting obligations under EPR, your PPT reporting data should largely overlap — both require tracking the weight and type of packaging you supply.
What to Do
If you haven't already assessed your plastic packaging against PPT:
- List all plastic packaging components you manufacture or import
- Establish whether each component meets the 30% recycled content threshold — ask your suppliers for documentation
- Calculate the weight of non-exempt plastic packaging you manufacture or import annually
- Determine whether you're above the 10-tonne registration threshold
- Register with HMRC if required and set up your quarterly accounting periods
HMRC has published detailed guidance on PPT, including worked examples for common packaging types. For businesses with complex supply chains — importing goods pre-packaged in plastic — the incidence rules can be involved, and specialist tax advice may be worth getting right.