Plastic Packaging Tax is chargeable for each individual finished packaging component.

When packaging is considered plastic

For the purposes of Plastic Packaging Tax, plastic means a polymer material to which additives or substances may have been added.

Cellulose-based polymers that have not been chemically modified, such as viscose, are not treated as plastic for the purpose of Plastic Packaging Tax.

Other cellulose-based materials which are chemically modified, such as cellulose acetate, are considered plastic.

Additives include materials such as calcium or dyes. When you assess the amount of plastic in a packaging component, the additives are classed as part of the plastic.

Plastics include polymers which are:

If a plastic packaging component is made from multiple materials but contains more plastic by weight (including additives which form part of the plastic) than any other substance, it is classed as a plastic packaging component for the purposes of the tax.

The other substances which you need to consider are:

You need to keep records to show what substances are in plastic packaging.

Examples of how to work out if multiple material packaging components are plastic are at the end of this guide.

Components that contain an adhesive

When you are considering if a component contains more plastic by weight and it includes an adhesive, you need to check if the adhesive is plastic. If the adhesive does not meet the definition of plastic you must not treat it as ‘any other substance’ from the ‘other substance’ list when you are working out if the component contains more plastic.

Recycled plastic

Plastic packaging components containing 30% or more recycled plastic are not chargeable for the tax. However, they still count towards the 10-tonne threshold for packaging you manufacture or import in a 12-month period, and you must still keep records of it.

For the purposes of Plastic Packaging Tax, all plastic is assumed to be made using non-recycled (virgin) material, unless there is evidence that recycled material has been used.

Examples of how to work out the percentage of recycled plastic in your packaging are at the end of this guide.

Recycled plastic comes from plastic waste that has been reprocessed from pre-consumer plastic or post-consumer plastic by using a chemical or mechanical manufacturing process. This is so it can be used either for its original purpose or for other purposes. This does not include organic recycling.

Pre-consumer plastic

Pre-consumer plastic is plastic that’s recovered from waste generated during a manufacturing process. It is then processed by a reprocessing facility so that it can be used as a raw material.

It does not include any material which would normally be re-used in a manufacturing process to avoid it becoming plastic waste. For example, reintroducing scrap or regrind into the manufacturing process after minimal reprocessing. Minimal reprocessing includes shredding and grinding.

Before 1 April 2027, pre-consumer plastic waste that has been reprocessed can be used as a source of recycled plastic for the purposes of Plastic Packaging Tax.

Post-consumer plastic

Post-consumer plastic is plastic that’s generated by the end user of the product when it can no longer be used for its intended purpose.

End users are:

This includes returns of material from the distribution chain.

Reprocessing plastic

The reprocessing of pre-consumer plastic and post-consumer plastic waste can be completed either at a reprocessing site or within your own premises if you have the facilities. To be classed as recycled plastic, the plastic waste must have been reprocessed so that it can be used as a raw material in manufacturing another plastic packaging component.

Examples of processes involved in reprocessing plastic waste can include:

This list is not exhaustive.

Example of using plastic scrap or regrind in the manufacture of plastic packaging components

Business A manufactures plastic trays.

Business A collects the trim (scrap) after finishing the plastic trays.

Business A minimally reprocesses the scrap by shredding it and uses it another time to manufacture similar plastic trays.

The scrap cannot be treated as a recycled plastic element of the plastic trays.

Example of reprocessed pre-consumer plastic on site that can be treated as recycled plastic in plastic packaging components on or before 31 March 2027

Business B manufactures plastic trays.

Business B collects the trim (scrap) after finishing the plastic trays.

Business B reprocesses the waste on site by chopping it into smaller pieces and melting it to produce plastic pellets (recyclate).

Business B uses the recyclate another time to manufacture similar plastic trays or other plastic packaging components.

Before 1 April 2027, the recyclate can be treated as a recycled plastic element of the plastic trays or other plastic packaging components.

Example of reprocessed post-consumer plastic that can be treated as recycled plastic in plastic packaging components

Business C buys reprocessed post-consumer plastic (recyclate) from a reprocessor.

Business C uses the recyclate in the manufacture of plastic trays.

The recyclate can be treated as a recycled plastic element of the plastic trays.

Packaging subject to the tax

There are 2 types of plastic packaging subject to the tax. These are packaging designed to be suitable for:

• use in the supply chain
• single use by the consumer

If your packaging is made up of several packaging components, you must account for Plastic Packaging Tax on each component.

Individual packaging components are generally manufactured separately before being assembled into a packaging unit. Examples include:

• bottles, caps and labels are manufactured separately before being assembled to make packaging units for drinks and liquids
• trays, boxes and plastic windows are manufactured separately before being assembled to make packaging units for certain foods, such as pies and cakes

Packaging designed to be suitable for use in the supply chain

You should check whether each plastic packaging component that you manufacture, or import is subject to Plastic Packaging Tax.

A plastic packaging component is a product that’s designed to be suitable for use in the supply chain, from the manufacturer of the goods to the user or consumer. It can be used alone or in combination with other products.

If the packaging component meets the definition, it does not matter if it is produced or imported for use in the supply chain of the goods, or by a consumer or user.

It must do one or more of the following functions:

Examples of packaging components include plastic:

• film to protect goods, such as film around raw meat

You can check examples of plastic packaging components that are chargeable for Plastic Packaging Tax.

Packaging designed to be single use consumer packaging

For the purposes of Plastic Packaging Tax, single use consumer packaging is any single use product designed to be used by a consumer or domestic user in performing one or more of the following functions in respect of goods or waste:

These products would be used by the consumer rather than in the supply chain.

Examples of single use consumer packaging are:

You can check examples of plastic packaging components that are chargeable for Plastic Packaging Tax.

Check if Plastic Packaging Tax applies to your component

Before you start, you’ll need to know:

• if your packaging component is considered plastic — read the section ‘When packaging is considered plastic’
• what your packaging component is designed to be suitable for

If you’ve used different materials to make your packaging component, you’ll need to work out the:

Start now

Examples of how to work out if multiple material packaging components are plastic

Example of an item that is considered a plastic packaging component

A 10-gram carton is made up of:

• 4 grams of plastic
• 3 grams of aluminium
• 3 grams of cardboard

All 10 grams will be considered a plastic packaging component, as plastic is the heaviest material.

Examples of items that are not considered plastic packaging components

A 10-gram carton is made up of:

• 2 grams plastic
• 5 grams of aluminium
• 3 grams of cardboard

This component will not be considered a plastic packaging component, as plastic is not the heaviest material.

A 10-gram carton is made up of:

• 5 grams plastic
• 5 grams cardboard

This component will not be considered a plastic packaging component, as plastic is not the heaviest material.

Examples of how to work out the recycled plastic content of plastic packaging components

Example when Plastic Packaging Tax is not due

A plastic packaging component made up of:

• 2 grams of recycled plastic
• 2 grams of virgin plastic
• 3 grams of aluminium
• 3 grams of cardboard

To calculate the proportion of recycled plastic:

1. Divide the recycled plastic weight by the total weight of all plastic elements.
2. Multiply the answer by 100.

The calculation in this example is: 2 ÷ 4 = 0.5 × 100 = 50%

The tax would not be due, as the percentage of recycled plastic (50%) exceeds the threshold of the plastic element of the packaging.

Example when Plastic Packaging Tax is due

Packaging component made up of:

• 1 gram recycled plastic
• 4 grams of virgin plastic
• 2 grams of recycled aluminium
• 3 grams of recycled cardboard

To calculate the proportion of recycled plastic:

1. Divide the recycled plastic weight by the total weight of all plastic elements.
2. Multiply the answer by 100.

The calculation in this example is: 1 ÷ 5 = 0.2 × 100 = 20%

In this example, the percentage of recycled plastic does not meet the recycled plastic content threshold. The Plastic Packaging Tax is due on the entire 10g packaging component.