UK Plastic Packaging Tax (UKPPT)
Information for customers and distributors
The United Kingdom (UK) introduced a new tax on finished plastic packaging components manufactured in or imported into the country on 1 April 2022. Plastic Packaging Tax (PPT) is reportable on a quarterly basis at a rate of £200 per tonne from 1 April 2022 and £210.82 per tonne from 1 April 2023. However, plastic packaging components containing 30% or more recycled plastic are not chargeable for the tax. The tax is intended to drive behaviour for businesses to use more sustainable packaging materials and create greater demand for, and increased levels of, recycling of plastic waste, so diverting it away from landfill or incineration.
A team of 3M cross-functional specialists (including Manufacturing & Supply Chain, Regulatory, Taxation and Business Groups) works to ensure that 3M is complying with the new tax requirements.
The UKPPT could also impact some of our customers and channel partners; hence we are receiving enquiries seeking information about the packaging composition of the 3M products they purchase or distribute, many in the form of specific questionnaires or complex feedback forms, each requesting differing levels of detail.
We have extracted the most frequently asked questions and provided answers and links per the Plastic Packaging Tax (PPT) Guidance published by Her Majesty’s Revenue and Customs (HMRC). This page will be reviewed and updated when new questions are received, or additional information becomes available, including any new regulations or requirements that are passed.
If you have a question that has not yet been addressed, please send it to:
NorthEuropecomms(a)mmm.com
Thank you for your continued business.
3M United Kingdom PLC
Frequently asked questions
Last updated: 1 April 2023
Q1: What is the purpose of the UK Plastic Packaging Tax (UKPPT)?
A: The tax aims to incentivise businesses to use recycled plastic in the manufacture of plastic packaging materials, supporting increased levels of recycling of plastic waste and thus preventing disposal through landfill or incineration.
Q2: What is the definition of ‘recycled plastic’?
A: Recycled plastic is plastic that has been reprocessed from recovered material by using a chemical or manufacturing process. This is so it can be used either for its original purpose or for other purposes. This does not include organic recycling. Further information available:
Check which packaging is subject to Plastic Packaging Tax - GOV.UK (www.gov.uk)
Q3: What is 3M’s position regarding the use of plastic packaging materials?
A: Plastic pollution is a pressing global challenge, and the production of fossil-based plastics negatively impacts the global climate through the release of greenhouse gas emissions.
3M is on pace to achieve its sustainability goal of reducing dependence on virgin fossil-based plastic by 125 million pounds (57 million kilos) by 2025.
Q4: When does the UKPPT apply?
A: The UKPPT applies to finished plastic packaging components manufactured in or imported into the UK. The business that undertakes the last substantial modification before the packing or filling process will be liable for the tax. There are 2 types of plastic packaging subject to the tax. These are packaging designed to be suitable for (1) use in the supply chain and (2) as single use consumer packaging. Further information available:
Check which packaging is subject to Plastic Packaging Tax - GOV.UK (www.gov.uk)
Check examples of plastic packaging components that are chargeable for Plastic Packaging Tax - GOV.UK (www.gov.uk)
Q5: Who is obliged to register for paying the UKPPT?
A: A company must register for the UKPPT if they expect to import into the UK or manufacture in the UK 10 tonnes or more of finished plastic packaging components in the next 30 days or have imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components in the last 12 months. Further information available:
Check when you must register for Plastic Packaging Tax - GOV.UK (www.gov.uk)
Q6: What is the definition of ‘plastic packaging component’?
A: A plastic packaging component is a product that’s designed to be suitable for use in the supply chain, from the manufacturer of the goods to the user or consumer. It can be used alone or in combination with other products. Further information available:
Check which packaging is subject to Plastic Packaging Tax - GOV.UK (www.gov.uk)
Q7: Have countries other than the UK introduced a plastic packaging tax?
A: Spain and the UK are one of the first countries to introduce a tax based on the recycled content of plastic packaging component materials. However, further introductions in other markets are expected. The scope of the specific legislation may differ from that of the UK.
Q8: Who is responsible for paying the tax for 3M products whose packaging contains less than 30 % recycled plastic?
A: 3M assesses its finished plastic packaging components manufactured in or imported into the UK. 3M carries out due diligence checks in respect of PPT for manufacturing, imports, and purchases with customers and distributors. 3M is registered and pays PPT in accordance with HMRC guidance. However, a customer could be liable for paying additional UKPPT if after purchasing a 3M plastic packaging component, they substantially modify it. Further information available:
Plastic Packaging Tax: steps to take - GOV.UK (www.gov.uk)
Q9: Will I be able to see how much UKPPT 3M has paid on my invoices or delivery notes?
A: The requirement to include a statement with your invoice to show that Plastic Packaging Tax has been paid will no longer be introduced as a mandatory requirement. Further information available:
Records and accounts you must keep for Plastic Packaging Tax - GOV.UK (www.gov.uk)
