Back

UK Plastic Packaging Tax

What is the UK Plastic Packaging Tax?

On 1 April, the UK Government announced a new levy on packaging that will affect businesses across the board. The ‘Plastic Packaging Tax’ charges GBP200 (US$260) per tonne of “finished plastic packaging components” that contain less than 30% recycled plastic. Manufacturers or importers of ten or more tonnes of plastic will have to pay the tax. Plastic Packaging Tax

Check which packaging is subject to Plastic Packaging Tax

When packaging is considered plastic

For the purposes of Plastic Packaging Tax, plastic means a polymer material to which additives or substances may have been added. Cellulose-based polymers that have not been chemically modified, such as viscose, will not be treated as plastic for the purpose of Plastic Packaging Tax. Other cellulose-based materials which are chemically modified, such as cellulose acetate, will be considered plastic. Additives include materials such as calcium or dyes. When you assess the amount of plastic in a packaging component, the additives are classed as part of the plastic. Plastics include polymers which are:

  • biodegradable
  • compostable
  • oxo-degradable

If a plastic packaging component is made from multiple materials but contains more plastic by weight (including additives which form part of the plastic) than any other substance, it will be classed as a plastic packaging component for the purposes of the tax. The other substances which you need to consider are:

  • glass
  • aluminium
  • steel
  • other metals
  • paper and board
  • wood
  • any other substance

Plastic Packaging Tax

Recycled plastic

Plastic packaging components containing 30% or more recycled plastic are not chargeable for the tax. However, they still count towards the 10-tonne threshold for packaging you manufacture or import in a 12 month period, and you must still keep records of it. For the purposes of Plastic Packaging Tax, all plastic is assumed to be made using non-recycled (virgin) material, unless there is evidence that recycled material has been used.

Calculating whether multiple material packaging components are plastic

Example 1

A 10-gram carton is made up of:

  • 4 grams of plastic
  • 3 grams of aluminium
  • 3 grams of cardboard

All 10 grams will be considered a plastic packaging component as plastic is the heaviest material.

Example 2

10-gram carton is made up of:

  • 2 grams plastic
  • 5 grams of aluminium
  • 3 grams of cardboard

This component will not be considered a plastic packaging component as plastic is not the heaviest material.

Example 3

10-gram carton is made up of:

  • 5 grams plastic
  • 5 grams cardboard

This component will not be considered a plastic packaging component as plastic is not the heaviest material.

How to calculate the recycled plastic content of plastic packaging components

Example 1

A plastic packaging component made up of:
  • 2 grams of recycled plastic
  • 2 grams of virgin plastic
  • 3 grams of aluminium
  • 3 grams of cardboard
To calculate the proportion of recycled plastic, divide the recycled plastic weight by the total weight of all plastic elements and multiply by 100. 2 ÷ 4 = 0.5 × 100 = 50% The tax would not be due as the percentage of recycled plastic (50%) exceeds the threshold of the plastic element of the packaging.

Example 2

Packaging component made up of:
  • 1 gram recycled plastic
  • 4 grams of virgin plastic
  • 2 grams of recycled aluminium
  • 3 grams of recycled cardboard
To calculate the proportion of recycled plastic, divide the recycled plastic weight by the total weight of all plastic elements and multiply by 100. 1 ÷ 5 = 0.2 × 100 = 20% In this example, the percentage of recycled plastic does not meet the recycled plastic content threshold. The Plastic Packaging Tax is due on the entire 10g packaging component. Source: 1. https://www.packaging-gateway.com/analysis/could-the-plastic-packaging-tax-unwrap-innovation-comment/ 2. https://www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packaging-tax

----------

About Kinghome

Founded in 1988,

Kinghome started in Taiwan with the mission of producing high quality prints and delivering outstanding packaging accessories. Our goal is to bring your ideas to life and make your brand vision to reality.

Kinghome is specialized in producing custom packaging and displays such as boxes, cards, tags, stickers, and polybags etc. Along with our clients, we analyze the industry, improve the packaging, and realize effective marketing visualization. With over 30 years of experience and knowledge, we only provide professional service. We have developed strong partnerships with over 580 clients from over 35 countries. Kinghome is not just your packaging supplier; we are your newest business partner.Our mission is to be a one stop shop with the service from designing, producing and delivering the end product. Our specialists keep our clients satisfied by helping them meet the evolving demands of the market.

Click to check our sustainable products

contact-icon