UK Plastic Tax set to hit April 2022...

Everyone's talking about this tough tax the UK government is looking to introduce in 2022, but who's it actually applicable too and what does it affect??

UK Plastic Tax set to hit April 2022...

Everyone's talking about this tough tax the UK government is looking to introduce in 2022, but who's it actually applicable too and what does it affect??

Well, don't worry because we are here to briefly explain :)

Being in the packaging sector for over 40 years now, we have seen many different 'generations' of products come and go that have changed how we think about certain things and how we package our products today. The Plastic Packaging Tax is set to be bought into UK Law in April 2022. This enables us to get you across to sustainable products that won't be affected by this new tax.

(Update December 2021) - the UK Government hasn't released any more documentation on the tax and the bill hasn't yet been drafted. This means two things; 1. It might not happen after all, although generally once a bill is set out to be made law they go through with it. 2. There's a lot of uncertainty about the particulars and who will be charged. The details below are what we have had from the official Government page here, and from Suppliers and Industry leaders.)

(Update February 2022) - more information is filtering through from industry leaders about how the packaging tax will actually affect businesses who use plastic packaging but don't fall into the parameters below. It would appear that the tax will be charged in the cost of the product itself (i.e. price increases) or as an extra line on the invoice, passed down from manufacturer to distributor, and possibly to the consumer at the end of the chain. The government still hasn't released any firm details on when the bill will be drafted or when it will be set into law, at this moment in time, it would be very unlikely that the bill will apply on the 1st of April.

It only applies to you if:

  1. You are a UK registered business.
  2. Annual turnover of £2 million-plus.
  3. Handle more than 50 tons of plastic waste per annum.

(Basically, a packaging manufacturer, since not many companies handle more than 50 tons of plastic packaging waste per year.)

What plastic products does it apply to:

  1. Any plastic packaging made with LESS than 33% recycled materials.
  2. Plastic packaging that is imported
  3. Plastic packaging that is produced in the UK
  4. Any plastic packaging that is NOT 100% recyclable at the end of its use.

What is the Plastic Tax charge?

The plastic tax is £200 per ton of plastic waste per annum. So the more tonnage of waste you produce = the higher the tax! As you can see, this can become a very expensive option, so it actually works out more cost-effective to change your packaging methods to be more sustainable.

Ultimately, if the manufacturers of plastic packaging are hit with the tax, it will filter down through with raw material increases and tax-based increases.

Right, so what should I do?

We would recommend you book an appointment with us here so that we can do an assessment of all your plastic waste and then recommend how you can reduce your tax liability or waive it completely through moving to sustainable, eco-friendly packaging.

Many companies are now moving to sustainable packaging well ahead of the 2022 date so that there's no sudden rush or problems that may cause you to be liable for the tax.

What is Westmount doing?

Westmount Packaging is doing the following to A - make sure we as a company are sustainable, and B - make sure our customers are not liable for this new tax in 2022.

  1. Making sure we supply a wide range of sustainable/eco-friendly packaging materials.
  2. Recycling all our plastic waste.
  3. Ensuring our suppliers are being sustainable in their packaging processes.
  4. Make sure as many products as possible are more than 33% made of recycled materials.
  5. Talking to all our customers on a regular basis to make sure they're aware of this new tax.

Don't hesitate. Act Now. We are here to support you.

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