Everything you need to know about the Plastic Packaging Tax – Updated 01.04.2025
In August 2024 the UK Government published statistics which indicated that the volume of plastic packaging that contains 30% or more recycled plastic has gone up in real terms, from 1,293 tonnes to 1,371 tonnes, as a proportion of the overall volume of plastic packaging components manufactured or imported in the UK, it’s gone from 37% to 46% compared to the same period in 22/23.
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Why apply a Plastic Packaging Tax?
The plastic tax was introduced to increase the demand for recycled plastic. This in turn will drive the increased recycling of plastic material and accelerate the growth of the UK recycling industry. The ultimate aim, of course, is a reduced dependence on fossil fuels.
Currently household recycling collection and processing is primarily dependent on the capabilities of local councils. The plastic tax should offer a financial incentive for investment in recycling and contribute to standardised recycling capabilities across Britain.
Which plastic packaging products incur the taxation?
There are two main use categories that will attract the Plastic Packaging Tax:
- use in the supply chain
- single use by consumers
Packaging that contains less than 30% recycled content will attract the tax. This includes plastics labelled as biodegradable, compostable and oxo-degradable.
Composite packs are also classed as plastic packaging if most of the materials used are plastic.
Recycled plastic comes from either post-consumer plastic or pre-consumer plastic. Post-consumer plastic comes from households, industrial facilities and returned materials from the distribution supply chain. Pre consumer plastic comes from waste generated in a manufacturing process and reused at the same site. However, it does not include pre-consumer plastic reused in the same process and generated as scrap or regrind.
Exceptions to the Plastic Packaging Tax
If you are purchasing the plastic packaging to export outside of the UK and the export dates fall within the criteria of UK Government guidance, you can defer the taxation.
If you pay the tax before exporting goods, you may be entitled to a refund. This can only be claimed from HMRC if you paid the tax to them directly.
If you have paid the taxation to a manufacturer or distributor through the goods purchase price, you must claim the refund from the business that paid the tax to HMRC. You must have sufficient evidence to support your claim and paperwork that demonstrates the export of the packaging.
Reporting Plastic Packaging Usage
If you are eligible to pay Plastic Packaging Tax you need to keep a breakdown of the weight of plastic packaging components either finished or imported each quarter, in Kilos and grams.
You may be using packaging with a minimum of 30% recycled content. If so, you must provide evidence to prove it.
The impact on your supply chain
Now is a great time to review your packaging to find out exactly what plastic packaging you are using, understand why you’re using it and explore if there is an opportunity to switch to a more sustainable alternative.
How we can help
Many of our stock plastic products contain at least 30% recycled content, as well as offering plastic-free alternatives. We can work with you to minimise the impact of the Plastic Packaging Tax on your supply chain. For more information contact us or click here to view our Plastic Packaging Tax landing page.