Food packaging firms still not ready for the plastics packaging tax, due to come into effect on 1 April 2022, survey finds.
The Foodservice Packaging Association (FPA) is warning that its sector is not ready for the plastics packaging tax (PPT) and is asking HMRC to ensure there is greater clarity in the guidance.
A survey, carried out in January indicates that almost 80% of FPA member companies involved in plastic packaging and products are not yet prepared to administer the tax, despite 75% of respondents having attended HMRC webinars on PPT.
According to the FPA, just over 50% of firms are still unsure which of their packs and products are subject to the tax and over 60% have yet to work out a method for measuring recycled content. Over half the respondents have not implemented a system for recording recycled content.
Commenting on the survey, FPA Executive Director Martin Kersh said: “HMRC should be concerned that if an informed group of businesses is unprepared, where does that leave the many businesses we suspect may not be aware of the tax or, if aware, have given no thought to setting up procedures to manage the tax?”
PPT will apply to any plastic packaging that is produced in — or imported into — the UK that does not contain at least 30% recycled plastic. But there are complex rules around what is considered to be taxable and also concern that some importers, traders and other parts of the economy are unaware of what they consider to be products that are defined by HMRC as packaging.
Catherine Robins, Partner at law firm, Pinsent Masons, says the measures go “a lot wider than people think.”
“It’s tricky because businesses are going to be caught out thinking that they’re not caught by it and will find they are,” she added.
HMRC have announced a series of webinars and further guidance to help businesses learn more about what they need to do before the tax comes into force on 1 April 2022, including the following.
- Introduction to Plastic Packaging Tax (register here).
- Plastic Packaging Tax — admin and technical aspects (register here).
To find out more about registering for PPT contact HMRC HERE.
