Exemptions and credits
Small businesses who manufacture or import less than 10 tonnes of plastic packaging in a 12-month period are exempted from PPT. However, these businesses are still required to keep records so they can prove that they are not liable for the PPT.
PPT will not be chargeable where the plastic packaging is for use:
- With licensed human medicines, e.g. blister pack or plastic pill bottle
- As transport packaging to import goods into the UK, e.g. packaging to secure the safe transit of goods
- In aircraft, ship or railway stores for international journeys, i.e. not released into the UK
- Components permanently designated or set aside for non-packaging use before or as soon as they are manufactured or imported, e.g. film used to coat white boards rather than used as packaging or plastic packaging where the primary function is for storage, e.g. toolboxes, glasses case, CD, DVD, and video game cases
In addition to the exemptions above, where plastic packaging is intended for export, PPT can be deferred and later cancelled if the export takes place within a 12-month window. A credit is also available for any waste if you know this information from your customer and you can reduce your PPT liability.
Return, payments and record keeping
The PPT returns are submitted to HMRC quarterly with the following accounting periods:
- 1 April to 30 June
- 1 July to 30 September
- 1 October to 31 December
- 1 January to 31 March
Return and payments are made online, and businesses caught by the tax will need to keep accurate records to include weight details of each plastic packaging component.
There are a number of set ways by which the weight of the plastic component in packaging can be determined. These are:
- The individual component method
- The sample component method
- The material inputs method
- The verified specification method
- The bulk weighing method
Alternatively, you can apply to HMRC to use a different method for calculating the weight of the plastic component.
Records should include evidence of any exemptions from the tax or credits claimed for exports.
Similar records are also required if you don’t need to register for PPT because you fall below the 10-tonne threshold, or your packaging contains more than 30% recycled content.
These records must be kept for 6 years.
What you must do when buying plastic packaging
You have a duty to carry out due diligence with suppliers to ensure PPT has been accounted for by a supplier in your supply chain.
If you can not show that you have taken reasonable steps to ensure PPT has been accounted for, you may be held secondarily or jointly and severally liable for any unpaid PPT. You will only be held liable secondarily or jointly and severally liable for PPT, where you knew or had reasonable grounds to suspect PPT had not been paid. It is important that you keep records of the due diligence checks you have carried out to protect your business.
