The Plastic Packaging Tax is now operational and if your business is affected you must register and comply with the requirements of the scheme. To assist taxpayers with their obligations HMRC updated their guidance on obligations on the Plastic Packaging Tax on 1 July.
When to submit your return
Once you have met the 10 tonne threshold you will need to register your liability for the Plastic Packaging Tax within 30 days of exceeding the threshold. Only once you have registered will you be able to submit a return, which will need to be submitted to HMRC 4 times a year.
You must submit the return and pay any tax due no later than the last working day of the month following the end of the accounting period you are reporting. For example, your return for the accounting period 1 April 2022 to 30 June 2022 must be submitted to HMRC on or before Friday 29 July 2022.
Your tax returns must cover the below accounting periods.
- 1 April to 30 June
- 1 July to 30 September
- 1 October to 31 December
- 1 January to 31 March
What do you need to include on your return?
All weights must be given in kilogrammes and rounded down to the nearest kg on your return.
In order to complete your return, you will need to know and be able to accurately report the total weights of any finished plastic packaging components that:
- you manufactured in the UK in the accounting period
- you imported into the UK in the accounting period
- you exported in the accounting period, or you intend to export in the next 12 months
- contain at least 30% recycled plastic content that you manufactured or imported in the accounting period that will not be exported
- you imported or manufactured for use in the immediate packaging of licenced human medicines in the accounting period that were not and will not be exported
- you have paid tax on in a previous accounting period, that another business has later converted or exported
Tax relief on exported and converted components for Plastic Packaging Tax
On 30 June 2022, HMRC updated their guidance on getting tax relief on exported and converted packaging.
You can get this tax relief in the same accounting period or claim a credit for them on a later tax return.
When can you get relief?
It may be possible for you to get tax relief if you manufacture or import finished plastic packaging components and you do the following:
- export them within the same accounting period
- intend to export them in the next 12 months
- have paid tax on them but later export them or convert them into different chargeable plastic packaging components
- have evidence another business has exported or converted them
It is important to note that you need to be registered for the Plastic Packaging tax to get relief.