The requirement to include a statement with your invoice that the incoming Plastic Packaging Tax (PPT) has been paid will be delayed, HM Revenue & Customs (HMRC) has confirmed.
The new levy – which aims to encourage businesses to use less plastic – will be introduced in April 2022.
But certain requirements, such as the PPT statement, will be delayed to give businesses more time to update software and systems.
The announcement forms part of new guidance to prepare businesses for the tax.
The Institute of Chartered Accountants in England and Wales (ICAEW) welcomed the move to delay the requirement, but warned that it will potentially “make it harder for businesses to check whether the tax has already been paid elsewhere in the supply chain”.
Announced as part of the Finance Act 2021, the PPT will encourage the use of recycled rather than new plastic within plastic packaging by imposing a £200 levy per metric tonne of plastic packaging.
The tax will apply to plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30 per cent recycled.
But businesses will need to keep records and, in most cases, register for the tax, even if all the packaging they manufacture or import contains more than 30 per cent recycled plastic.
However, firms that manufacture or import less than 10 tonnes of plastic packaging over a 12-month period will be exempt from the tax.
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