Pillar Guide · Updated June 2026

UK Plastic Packaging Tax 2026/27: Complete Business Guide

The UK Plastic Packaging Tax (PPT) charges £217.85 per tonne on plastic packaging components that contain less than 30% recycled plastic by weight. Manufacturers and importers who handle 10 tonnes or more annually must register with HMRC within 30 days of meeting the threshold -- even if all their packaging qualifies for the recycled content exemption. This guide covers who must register, how to calculate the tax, the 30% recycled content rule, key exemptions, record-keeping requirements, and how to claim credits for exported packaging or PPT already paid upstream in the supply chain.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

Key PPT figures -- 2026/27

PPT rate: £217.85 per tonne of chargeable plastic packaging
Registration threshold: 10 tonnes manufactured or imported in 12 months
Recycled content exemption: 30% recycled plastic by weight
Return frequency: quarterly (due last day of following month)
Record retention: 7 years minimum
Non-registration penalty: £500 (first offence)
Introduced: April 2022 at £200/tonne, uprated annually by CPI

What is the Plastic Packaging Tax

The Plastic Packaging Tax was introduced on 1 April 2022 as part of the UK government's strategy to reduce plastic waste and incentivise the use of recycled materials. It is an environmental tax administered by HMRC, charged on manufacturers and importers of plastic packaging components that do not contain at least 30% recycled plastic.

The policy rationale is economic: by making virgin-plastic packaging more expensive than recycled-content packaging, PPT creates a financial incentive to reformulate packaging using recycled materials. The government's own impact assessment estimated PPT would increase the use of recycled plastic in packaging by around 40% over the first five years of operation.

PPT is charged on plastic packaging components -- individual packaging elements that are designed to contain, protect, handle, deliver or present goods. A product may consist of multiple components: for example, a plastic bottle plus a separate plastic cap are two components each assessed independently for PPT purposes.

The tax applies to finished plastic packaging components, not to raw plastic materials or plastic that is not used in packaging. Plastic used in manufacturing processes, in construction, or in consumer products that are not packaging is not subject to PPT. The key question is always: is this item "suitable for use in the packaging of goods" within the statutory definition?

£217.85 per Tonne Rate and Calculation

The PPT rate of £217.85 per tonne is applied to the weight of chargeable plastic packaging components -- those containing less than 30% recycled plastic. The calculation is straightforward:

PPT due = (chargeable tonnes) x £217.85

Example: 50 tonnes chargeable packaging x £217.85 = £10,892.50

The unit of measurement is metric tonnes (1,000 kg). Most businesses will work in kilograms in practice: divide total chargeable kg by 1,000 to get tonnes, then multiply by £217.85.

Worked example: A food manufacturer produces 120 tonnes of plastic packaging per quarter. After testing, 80 tonnes contain at least 30% recycled plastic (exempt). 40 tonnes do not meet the threshold (chargeable). PPT due = 40 x £217.85 = £8,714 for the quarter.

The rate is uprated annually in line with the Consumer Prices Index (CPI). When the government publishes the Autumn Statement each year, the rate for the following April is confirmed. Businesses should build the current and projected rate into their packaging cost models.

Who Must Register (10-tonne Threshold)

You must register for PPT if you manufacture or import 10 tonnes or moreof plastic packaging components in a 12-month period. The threshold operates on a rolling 12-month basis -- HMRC looks at the preceding 12 months at any given point. You must also register if you expect to manufacture or import 10 tonnes or more within the next 30 days.

Critically, registration is required even if all your packaging is exempt(i.e. meets the 30% recycled content threshold and no PPT will be due). The registration and compliance obligations are separate from the tax liability. A business with 100% recycled-content packaging must still register, file nil returns quarterly, and maintain records evidencing the recycled content exemption.

Who must register:

UK manufacturers: businesses that manufacture plastic packaging components in the UK.
Importers: businesses that import plastic packaging into the UK, whether empty (unfilled) or already filled with goods.
Both roles: a business that both manufactures and imports registers once but reports both streams in the same return.

Registration is via HMRC's online PPT service. Failure to register within 30 days of meeting the threshold attracts a £500 penalty for a first offence. Subsequent failures attract higher penalties. HMRC cross-references customs import data against PPT registration to identify non-compliant importers.

The 30% Recycled Content Rule

The 30% recycled plastic content rule is the central exemption mechanism in PPT. A plastic packaging component that contains at least 30% recycled plastic by weight of its total plastic content is not chargeable to PPT.

Key points about the recycled content rule:

Measured by weight of plastic only -- non-plastic additives, fillers and coatings are excluded from the calculation.
Recycled plastic only -- virgin plastic and bio-based (plant-derived) plastic do not count. Only post-consumer or post-industrial recycled plastic qualifies.
Component-level assessment -- each component is assessed separately. A package with a recycled-content bottle and a virgin-plastic cap must assess each component independently.
Evidence required -- businesses must hold supplier statements or certified laboratory analysis confirming the recycled content percentage. HMRC accepts industry-standard certification (e.g. ISCC+, RecyClass) as evidence.
Chemical recycling counts -- plastic derived from chemical recycling processes (pyrolysis, depolymerisation) qualifies as recycled if certified to an HMRC-accepted standard.

The 30% threshold was deliberately set below 100% to be achievable across most packaging categories using currently available recycled material streams. The government has signalled it may increase the threshold in future years as recycling infrastructure expands.

Exemptions from Plastic Packaging Tax

Beyond the 30% recycled content exemption, PPT legislation provides several other exemptions:

Exemption	Conditions
30% recycled content	At least 30% recycled plastic by weight with evidence
Immediate packaging of licensed human medicines	Must be the primary container directly in contact with the medicine
Packaging not primarily plastic by weight	Glass, metal, cardboard components where plastic is minority by weight
Permanently intended for non-packaging use	E.g. a decorative plastic container sold as a gift in itself
Already been subject to PPT	Credit system prevents double taxation in supply chain
Components for export use	Credit/repayment available on export of taxed packaging
National security and defence	Packaging used exclusively for defence or security purposes

The medicine packaging exemption is narrow: it applies only to the immediate container (the packaging in direct contact with the medicine) of a product holding a UK marketing authorisation. Secondary and tertiary packaging of medicines -- outer boxes, shrink wrap, pallets -- does not qualify for the exemption and is subject to PPT unless meeting the 30% recycled content rule.

Record-keeping and Compliance

PPT has detailed statutory record-keeping requirements. Registered businesses must maintain records for at least 7 years:

Component records: a description and weight of every plastic packaging component manufactured or imported, by type.
Recycled content evidence: supplier statements, certificates of analysis or third-party recycled content certifications for every exempt component type.
Import records: customs entries (C88 / E2 declarations) showing the weight and description of plastic packaging imported.
Manufacturing records: production records showing weight of plastic packaging produced by type and period.
PPT returns and payments: copies of all quarterly returns and evidence of payment.
Export records: for credit claims, evidence that packaging has been exported (e.g. export declarations, Bills of Lading).

HMRC can conduct PPT compliance checks at any time within 4 years of the end of the return period (20 years for fraudulent conduct). Compliance checks typically request supporting evidence for recycled content exemption claims and cross-reference import volumes against PPT returns.

The quarterly return deadline is the last day of the month following the quarter end: April to June returns are due 31 July; July to September due 31 October; October to December due 31 January; January to March due 30 April. Filing or payment one day late attracts an automatic £250 penalty.

How to Use Recycled Content Credits and Export Relief

The PPT credit and repayment system prevents double taxation across the supply chain and provides relief where taxed packaging is subsequently exported:

Supply chain credit: if PPT has been paid by a manufacturer and the same packaging is then imported again or assessed again by another party in the chain, the downstream party can claim a credit equal to the PPT already paid upstream. This requires the upstream party to provide a statement confirming the PPT paid.
Export credit: a business that has paid PPT on packaging can claim a credit or repayment if that packaging is subsequently exported from the UK. The export must be documented and the credit claimed in the quarterly return for the period in which export occurs.
Unused credits: where credits exceed the PPT liability in a quarter, the excess is carried forward to reduce future liabilities. Where credits permanently exceed liabilities (e.g. for a primarily exporting business), a repayment can be claimed directly from HMRC.

Businesses that both import and export plastic packaging -- for example, a manufacturer that imports plastic resin for UK production but also exports finished packaged goods -- should maintain a detailed credit tracking register to ensure accurate quarterly returns and avoid overpayment or underpayment.

Frequently Asked Questions

What is the UK Plastic Packaging Tax rate for 2026/27?

The Plastic Packaging Tax rate for 2026/27 is £217.85 per tonne of chargeable plastic packaging. The rate is uprated annually in line with CPI inflation. PPT was introduced at £200/tonne in April 2022, rising to £210.82/tonne in April 2023, then £217.85/tonne from April 2024 onwards (confirmed for 2026/27). The tax is charged per tonne of finished plastic packaging component that does not contain at least 30% recycled plastic by weight.

Who must register for Plastic Packaging Tax?

You must register for PPT within 30 days of first meeting the registration threshold. The threshold is 10 tonnes of plastic packaging manufactured in or imported into the UK in the previous 12 months, or if you reasonably expect to manufacture or import 10 tonnes in the next 30 days. Registration is required even if all your packaging contains 30% or more recycled plastic and no tax will be due -- the registration obligation and the tax liability are separate. Failure to register triggers a £500 penalty for a first offence.

What counts as plastic packaging for PPT purposes?

A plastic packaging component is a product that is designed to be suitable for use in the packaging of goods, and is made of plastic (where plastic is the predominant material by weight). "Plastic" means a polymer material to which additives may have been added. Packaging that is not primarily plastic by weight -- for example glass bottles with plastic lids where glass predominates -- is not plastic packaging for PPT purposes. The test is applied at the component level: a plastic bottle is one component; a separate plastic cap is another. Both are assessed independently.

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How is the 30% recycled content rule measured?

The 30% recycled plastic content rule is measured by weight. If a plastic packaging component contains at least 30% recycled plastic by weight of the total plastic content, it is exempt from PPT. Recycled plastic means plastic that has been reprocessed from recovered material by a chemical or manufacturing process (post-consumer or post-industrial). Virgin plastic and bio-based plastic (plastic derived from biological feedstock) do not count as recycled plastic for PPT purposes. Businesses must have robust evidence -- typically a statement from the recycled content supplier -- to claim the exemption.

What are the main exemptions from Plastic Packaging Tax?

The key exemptions are: (1) the 30% recycled content exemption -- packaging meeting the threshold is not chargeable; (2) packaging that is not primarily plastic by weight; (3) packaging used in the immediate packaging of licensed human medicines; (4) packaging that is permanently set aside for use other than packaging goods (e.g. a decorative container); (5) transit packaging used to protect goods during transit and not intended for the end consumer; (6) packaging used for purposes of national security or defence; (7) packaging that has already been subject to PPT once -- the tax is charged only once in the packaging's commercial life.

Does PPT apply to packaging imported already filled with goods?

Yes. Importers of filled packaging -- for example, a retailer importing tinned goods in plastic containers -- are liable for PPT on the plastic packaging components if those components do not meet the 30% recycled content threshold. The importer must calculate the weight of the plastic packaging component (not the total product weight) and apply the £217.85/tonne rate. This is administratively challenging for businesses importing large volumes of packaged goods, as they must obtain recycled content data from overseas manufacturers and may have limited ability to influence packaging design.

How are PPT returns filed and paid?

PPT is reported and paid quarterly via the online HMRC PPT account. The quarterly return covers the periods April to June, July to September, October to December, and January to March. Returns and payments are due by the last day of the month following the quarter end. A nil return is required for registered businesses even when no tax is due. Businesses must keep records for at least 7 years, including details of all plastic packaging components manufactured or imported, their weights, recycled content data, and evidence supporting any exemptions claimed.

Can I use a credit for PPT already paid if packaging is exported?

Yes. A credit (or repayment) is available where plastic packaging on which PPT has been paid is subsequently exported. If a manufacturer pays PPT on packaging in the UK and then that packaging is used to export goods overseas, they can claim a credit against their PPT liability or a repayment. Similarly, if PPT has already been paid by a manufacturer and a subsequent business in the supply chain is also assessed on the same packaging, they can credit the PPT paid upstream. The credit system prevents double taxation across the supply chain.

What records must businesses keep for PPT compliance?

Businesses registered for PPT must retain: (1) records of all plastic packaging components manufactured or imported, including weight and description; (2) evidence of the recycled content of each component type (supplier statements or certified analysis); (3) records of any exemptions claimed with supporting evidence; (4) records of packaging exported (for credit claims); (5) all PPT returns and payments for at least 7 years from the end of the accounting period. HMRC can conduct compliance checks and request evidence. Failure to keep adequate records attracts a £500 penalty per compliance failure.

Is PPT charged on plastic packaging used in food manufacturing?

Yes, unless the 30% recycled content threshold is met. Plastic packaging used in food manufacturing -- including cling film, plastic trays, bags, bottles and composite packaging where plastic predominates by weight -- is chargeable to PPT. The only food-related exemption is for immediate packaging of licensed human medicines. The food and drink industry is one of the largest users of plastic packaging in the UK and faces significant PPT liability from manufacturers and importers across the supply chain. Many food businesses have invested in packaging redesign to meet the 30% recycled content threshold and eliminate PPT liability.

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About the author

Emma Clarke

UK Tax Writer

Emma Clarke has been writing about UK personal tax since 2018, with a particular focus on Self Assessment, PAYE coding and the practical mechanics of how HMRC actually applies the rules to ordinary salaries. Her work concentrates on translating the dense language of HMRC manuals and Finance Act schedules into worked examples that show, pound by pound, how income tax and National Insurance reduce a gross salary to the figure that lands in a UK bank account. Emma covers the full PAYE lifecycle: tax codes (1257L, BR, K codes, emergency codes), the Marriage Allowance, the High Income Child Benefit Charge, salary sacrifice arrangements and their effect on pensionable pay, the Apprenticeship Levy, and the differences between the rUK and Scottish income-tax regimes. She is particularly interested in the edge cases that catch PAYE employees out — the £100,000 personal-allowance taper, the 60% effective marginal rate it creates, and the interaction between student-loan plans and pension contributions. Every figure in Emma's articles is verified against the current HMRC rates pages and worked through a Self Assessment calculation by hand before publication. She writes to CalcHub's editorial standards: primary-source citations, plain English, no promotional language, and clear "this is general information, not financial advice" disclaimers where appropriate.

Personal-finance writer since 2018
UK tax specialism — PAYE, Self Assessment, National Insurance
Writes to CalcHub editorial standards (primary-source citation, annual review)

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Last updated: 10 June 2026How we verify

Disclaimer: This guide reflects UK Plastic Packaging Tax rules for 2026/27 as of June 2026. PPT rates are uprated annually by CPI; the 30% recycled content threshold may be increased in future years. Exemption eligibility, record-keeping standards and credit mechanisms may be updated by HMRC guidance. See gov.uk for current official guidance. Complex multi-site manufacturing or import arrangements should be reviewed with an environmental tax specialist.