Plastic tax records from 2022

New plastic tax. In May 2021 the government confirmed that its proposed tax on plastic packaging will become a reality from April 2022. While the tax will mainly apply to larger businesses there will be administrative consequences for small and medium-sized entities even if they don’t deal directly in plastic packaging.

Packaging. The tax will be £200 per tonne if your business produces or imports ten tonnes or more of plastic packaging per year. This includes packaging which already contains other products, e.g. soft drinks. There’s more information in HMRC’s notice “Get your business ready for the Plastic Packaging Tax”. While you won’t be liable to pay the tax if you import or manufacture less than ten tonnes, you’ll need to keep special records.

Trap. HMRC says that the record keeping requirements will be reduced for these smaller suppliers, but won’t provide further information until later in the 2022. We’ll let you know when it’s published.

From April 2022 businesses producing or importing ten tonnes or more of plastic packaging will have to pay a tax of £200 per tonne. All businesses producing or importing less than this amount will need to keep records.

VAT new deferral scheme deadline nears.

Deferred VAT. If you made use of HMRC’s VAT payment deferral scheme between March and June 2020, haven’t yet paid the VAT you deferred and need more time to pay, you’ll need to take action by 21 June 2021 to avoid being charged a penalty.

New deferral scheme. HMRC’s new scheme allows you to spread payment of the deferred VAT over eleven monthly instalments, but you must register with HMRC by the June deadline to take advantage of this. You can do this online or by calling the special VAT deferral line on 0800 024 1222.

If you deferred your VAT payments between March and June 2020 and need more time to pay, you have until 21 June 2021 to contact HMRC. You can spread the payments over eleven instalments.