The Plastic Packaging Tax (PPT) rate increase, confirmed in the Spring Budget, came into effect from 1 April 2023.
Where packaging falls within the scope of the tax, the rate increases in line with the Consumer Price Index, becoming £210.82 per tonne, rather than £200 per tonne. The new rate applies to packaging manufactured in or imported into the UK after this date.
No legal obligation for PPT invoice wording
HMRC had previously announced an about-turn on rules for invoices where businesses are liable to the tax. The original intention was a mandatory requirement for companies liable to the PPT to state on their invoices that PPT had been paid. Initially deferred, it has since been confirmed that it will not now take effect. Whilst businesses are encouraged to give visibility to the PPT, invoice wording will not be a legal requirement.
HMRC suggests other ways in which the PPT can be highlighted. These include giving information about the PPT on price lists, and sharing with customers how much PPT has been charged.
If you need any advice on PPT and the implications for your business, please speak to your RfM adviser. Enquire online or contact one of our offices.
For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.