New changes in the tax rate and penalties for non-compliance take effect on April 1st, 2023, as the “soft landing” period comes to an end.
The final meeting of the Industry Working Group for the Plastic Packaging Tax took place yesterday at the Treasury, where important changes to the tax were discussed and finalized. The tax rate has been increased from £200 to £210.82, in line with the Consumer Price Index (CPI) inflation rate. These changes will come into effect on April 1st, 2023. This change comes as the “soft landing” period for the tax draws to a close in April, and non-compliant companies will now face fines.
The Plastic Packaging Tax, which was introduced as a measure to encourage the use of recycled materials in plastic packaging and reduce plastic waste, has now become more stringent. With the end of the “soft landing” period, businesses that fail to comply with the tax regulations will be subject to penalties.
Key changes to the tax regulations include:
- Tax rate increase: The tax rate has been increased to £210.82, in line with the CPI inflation rate, to ensure that the tax remains effective in encouraging the use of recycled materials and reducing plastic waste.
- End of the “soft landing” period: The one-year grace period for companies to adjust to the new tax rules is ending in April. Starting from April 1st, 2023, non-compliant companies will face fines for failing to meet the tax requirements.
- Late return submission penalties: Companies that submit their tax returns late will now be fined. Late payment rules have been modified to bring the Plastic Packaging Tax in line with other taxes.
- Interest charges for late payments: Companies that submit their tax payments late will be charged interest on the outstanding amount.
- Penalties for non-submission: Companies that fail to submit a return will not only be fined but will also have their tax obligations estimated by the authorities.
As the Plastic Packaging Tax becomes more stringent, it is crucial for businesses to be aware of these changes and ensure their compliance. Companies are urged to review their current practices, make necessary adjustments, and submit their returns and payments on time to avoid fines and penalties. The increased tax rate and the introduction of stricter enforcement measures signal the government’s commitment to reducing plastic waste and promoting a more sustainable future.
In light of these changes, Skymark remains committed to innovation and development in relation to recycled content across our product ranges. Our continuous efforts in sustainability and eco-friendly packaging solutions will help our customers adapt to the new tax regulations while contributing positively to the environment.
