Plastic Packaging Tax is charged at £223.69 per tonne (April 2025)

Plastic Packaging Tax

The UK government has introduced a range of legislation designed to move the UK towards a more circular economy, where resources are maximised, and waste is minimised.

PPT is an environmental tax designed to provide a financial incentive for businesses to reduce their use of single use virgin plastic and increase their use of recycled plastic. 30% recycled packaging is PPT exempt, raising the demand for PCR plastic, making plastic waste more valuable and helping to divert it away from landfill or incineration.

Most plastic packaging products will be affected, including; packaging with less than 30% recycled content and imported products, such as drinks in plastic bottles.

The tax only applies to plastic packaging manufactured or imported into the UK; this means that goods imported and then exported within a twelve month timescale may be eligible for a credit from HMRC. Invopak includes PPT as a separate line on your invoice to help make these costs clear.

AN INTRODUCTION TO PLASTIC PACKAGING TAX (PPT)

What are the alternatives?

There are a range of alternatives available including packaging made from PCR (Recycled Plastic), tinplate and aluminium. Please see below to explore alternatives.

Switch & Save

Post Consumer Resin (PCR)

PCR is also called post consumer recycled, post consumer regrind or post consumer recyclate, they all refer to products that contain recycled plastic. PCR products that include 30% or higher levels of recycled plastic are not liable for PPT.

For the container to maintain its integrity & performance, it has to have the right blend of PCR and virgin material, which is why the threshold is 30%. At Invopak we are increasing our PCR range as more products come to market, including a new PCR bucket range, as well as a wider variety of Jerry cans and HDPE bottles.

As recycled plastic containers as exempt from Plastic Packaging Tax, you can save money by switching. Click here to find out more.

View Recycled Plastic Containers

Metal Recycles Forever

Metal Packaging

Metal packaging is exempt from the tax, so aluminium bottles, lever lid tins and metal pails are unaffected. Even if a metal container includes plastic parts, as long as plastic is not the heaviest component PPT will not apply, so a metal bottle with a plastic shroud is not liable for the PPT charge.

We are one of the biggest suppliers of metal packaging in the UK and they are one of our fastest growing ranges. Metal can also be recycled forever, making it an excellent choice for the environment.

See our full selection of metal containers here.

View Metal Containers

Plastic Tax FAQ's

  • What is classed as packaging?

    For the purposes of PPT, packaging is defined as products used for the containment, protection, handling, delivery and presentation of goods.

  • Who needs to register for PPT?

    Businesses need to register for PPT if they have manufactured or imported 10 tonnes, or more, of plastic packaging within a 12 month period.

    Please click the link below for a step by step guide from HMRC:

    Step-by-step guide to registering for PPT

  • Will PCR products be cheaper?

    Not always. PCR is becoming more expensive as demand increases, and it also requires complex manufacturing processes to produce, which means that PCR may present environmental savings rather than financial ones. 

  • Can I use PCR for Food and Beverages?

    No. PCR plastics are not currently Food Grade or UN certified, though technologies are evolving in this area. Multi-layer products that have a PCR core with virgin plastic layers can be used for consumables and are a better environmental option than a standard bottle.

  • Is Transport packaging exempt?

    PPT does not apply to Tertiary or Transport packaging as long as it is used to transport multiple sales units or grouped packaging AND to prevent damage during transportation. This means that Invopak will not be charging PPT on pallet wrap or straps. Transport packaging does not count towards the 10 tonne threshold for registration. For a full list of Transport exemptions please click the link below:

    HMRC Transport Packaging Exemptions

  • How do I claim back PPT on exported products?

    In order to claim a credit from HMRC you must keep records to show the weight of the packaging and the date it was exported, to prove it has been exported within the necessary 12 month timeframe. For a full list of appropriate documentation for HMRC purposes please click the link below:

    HMRC Record Keeping and Accounts Guidance

  • How does it affect VAT?

    PPT must be included for VAT purposes, so VAT is charged on the product cost and PPT.

  • Are any plastic products exempt?

    Certain products will be exempt, including products used for packaging licensed medicine. Other products will be exempt from the charge but may still count towards the 10 tonne threshold for registration.

    HMRC Record Keeping and Accounts Guidance

Plastic Tax Exempt Ranges