Check which packaging is subject to Plastic Packaging Tax
Check what classifies as plastic, recycled plastic and packaging components, and if the packaging you manufacture or import is subject to the tax.
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:
- biodegradable
- compostable
- oxo-degradable
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:
- glass
- aluminium
- steel
- other metals
- paper and board
- wood
- any other substance
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.
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:
- households
- commercial facilities
- industrial facilities
- institutional facilities
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:
- remelting
- compounding
- repelletising
- remelting to create granules
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
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.
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:
- contain the goods
- protect the goods
- handle the goods
- present the goods
- deliver the goods
Examples of packaging components include plastic:
- trays used to contain and protect food, such as a ready meal tray
- film to protect goods, such as film around raw meat
- pots designed to handle and deliver products, for example yoghurt pots
Find more examples of packaging designed for use in the supply chain.
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:
- containment
- protection
- handling
- presentation
- delivery
These products would be used by the consumer rather than in the supply chain.
Examples of single use consumer packaging are:
- plastic bags
- disposable cups, plates and bowls
- gift wrapping such as ribbon and sticky tape
Find more examples of packaging designed to be single use consumer packaging.
Find out when plastic packaging is exempt from the 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
- 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:
- total weight of your packaging component in grams
- weight of each different material in grams
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
Example 1
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.
Example 2
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:
- Divide the recycled plastic weight by the total weight of all plastic elements.
- 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:
- Divide the recycled plastic weight by the total weight of all plastic elements.
- 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.
Last updated 15 August 2023 + show all updates
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What recycled plastic is has been updated. The sections on pre-consumer plastic, post-consumer plastic and reprocessing plastic have been amended for clarity. Examples have been added to the reprocessing plastic section.
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The section 'Check if Plastic Packaging Tax applies to your component' has been added.
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Added translation
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Examples of how to work out if multiple material packaging components are plastic and how to work out the recycled plastic content of plastic packaging components have been added.
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Guidance about components that contain an adhesive has been added.
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Information in the 'Pre-consumer plastic' section of the guide has been updated.
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Information about cellulose-based material has been added in the 'When packaging is considered plastic' section, information about recovered materials and pre-consumer plastic has been added in the 'Recycled plastic' section and information about grinding has been updated in the 'Reprocessing plastic' section.
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The section 'How recovered material is reprocessed from pre-consumer plastic' has been added.
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Added translation
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Links to more examples of packaging subject to Plastic Packaging Tax and information about packaging made up of several components have been added.
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The page has been updated with more information about recycled plastic. The information about plastic packaging which is exempt from Plastic Packaging Tax has been moved to a new page.
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First published.