Page 36 - Plastics News September 2022

Confusion Aplenty As Few Sign Up For Plastics Tax

as many as 20,000 businesses would be since the definition of plastics packaging
affected is not always obvious: items such as
“Fewer than one in 20 liable businesses plastics coat-hangers, bin liners, gift
registered for the new plastics packaging wrapping such as tape, for example, are
tax in the first month,” said Andrew subject to the levy.”
McCaffery, EPR director at the packaging The list of packaging in and out of
data services provider. “This considerable scope is lengthy. The data reporting
body blow also casts doubt over the £235 requirements for the tax are excessively
million ($271m) in revenue HMRC demanding, and many businesses are
predicted it would collect from the new yet to invest in improving their data
tax in its first year. More worryingly, it capturing capability to comply. The
also paves the way for a raft of fines for burden of collecting the relevant data
non-payment for the industry. and compiling quarterly returns has been
UK-based Ecoveritas has cited a highly underestimated by many, and
widespread lack of understanding after “We interact with thousands of there is a significant impact, especially
less than 5 per cent of the number of businesses of all shapes and sizes, and it on those businesses that have never had
registrations Her Majesty’s Revenue & was clear that many were still struggling to report on packaging data in such
Customs’ (HMRC) estimated would to get to grips with it. Despite the masses detail before.
pay the new tax on plastics packaging of guidance issued by HMRC, which
actually signed up. was overwhelming, the legislation is “Deliberate failure to comply carries
The UK Government’s flagship plastics complicated. Businesses are confused the risk of criminal charges,” added
about who needs to pay the tax, when, McCaffery. “Although HMRC is
packaging tax (PPT) is payable by UK and on which products. unlikely to impose hefty penalties for
businesses that manufacture or import innocent non-compliance immediately,
10 tonnes or more of plastics packaging, “Many are unaware that the products being unaware of a new tax will not stop
which does not include at least 30 per they make or use are within the tax’s HMRC from investigating your business
cent recycled plastics over 12 months. scope, or that they could be liable if and levying fines for any underpayments
New data shows that just 992 UK another member of their supply chain or failure to register and make returns in
fails to pay.
businesses registered to pay the new the longer term. Companies that ignore
tax, which came into force on 1 April “We believe the low number of the plastics packaging tax may be in for a
2022, in the first month of registrations, registrations is down to some firms still nasty surprise.”
despite HMRC’s estimates suggesting being unaware they have to pay the tax

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