Government Makes Six Amendments to the Plastic Packaging Tax
on October 28, 2021
As you’re likely aware by now, next year will see the introduction of a new tax on UK businesses, stipulating a cost of £200 per tonne for all plastic packaging used containing less than 30% recycled content. Ahead of the tax's introduction, on 1st April 2022, the UK government has set out a number of amendments to the associated legislation.
The amendments will be applied to the Finance Bill 2021-2022, to amend the Finance Act 2021, and they’re as follows:
HMRC are able to modify the timing and meaning of an import, ensuring changes can be made to comply with other relevant policies, which alters the original legislation--having previously mandated that items are taxable at the time of import.
Businesses below the de minimis threshold who currently have no liability to register will not have to pay the tax, ensuring companies who manufacture or import plastic packaging below the stated limit (outlined in section 52) will not incur the tax burden.
Tax relief will be applied for ‘persons enjoying certain immunities and privileges, such as visiting forces and diplomats’, while allowing for the inclusion of administrative requirements in secondary legislation, outlining compliance with international tax agreements (described in section 55).
Obligations and entitlements of the tax’s group members (such as completing tax returns) will be transferred to a representative member of that group.
HMRC must notify representative members of a Plastic Packaging Tax group of the date that applications for changes of group treatment will take effect. This amendment means group registration can take effect from the date of that application, to align with the timing of the registration (Schedule 13).
HMRC can alter certain terms used to describe ‘unincorporated bodies’, ensuring consistency throughout the legislation (Schedule 9).
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