If your business manufactures in or imports into the UK 10 tonnes or more of finished plastic packaging components in a 12-month period, you must complete plastic packaging tax registration with HMRC within 30 days of crossing that threshold. Registration runs through the Government Gateway, and it applies whether or not you will actually owe any tax, because packaging with 30% or more recycled content is exempt from the charge but still counts toward the 10-tonne trigger.1GOV.UK. Plastic Packaging Tax: Steps to Take The tax itself is charged at £228.82 per tonne from 1 April 2026 on packaging containing less than 30% recycled plastic.
Who Has to Register
HMRC uses two separate tests to decide whether you have hit the 10-tonne threshold, and either one on its own creates a registration obligation:2GOV.UK. Check When You Must Register for Plastic Packaging Tax
- Backward look: you have manufactured in the UK or imported into the UK 10 tonnes or more of finished plastic packaging components in the last 12 months.
- Forward look: you expect to manufacture or import 10 tonnes or more in the next 30 days alone.
Once either test is met, the 30-day clock to register begins. You will need to give HMRC the exact date you became liable, so keep a rolling tonnage record rather than trying to reconstruct it later.3GOV.UK. Register for Plastic Packaging Tax
The recycled-content trap catches businesses that assume they are outside the regime. Packaging with at least 30% recycled plastic is not charged, but its weight still counts toward the 10-tonne threshold. A business dealing exclusively in high-recycled-content packaging can owe zero tax and still be required to register, file returns, and keep records.1GOV.UK. Plastic Packaging Tax: Steps to Take
What Counts as Plastic Packaging
A packaging component is classed as plastic if it contains more plastic by weight, including any additives that form part of the plastic, than any other single material.4GOV.UK. Check Which Packaging Is Subject to Plastic Packaging Tax A composite of plastic and cardboard only qualifies if the plastic portion outweighs the cardboard. The tax covers items used to contain, protect, handle, deliver, or present goods.
Only finished components count toward the threshold. A component is finished once its last substantial modification has taken place, meaning a manufacturing process that changes its shape, structure, thickness, or weight.5GOV.UK. Definitions of Finished Components and Substantial Modifications for Plastic Packaging Tax Extrusion, forming, moulding, layering, laminating, and printing all qualify. Blowing a preform into a bottle, cutting film to size, labelling, and sealing do not.
Whoever performs the last substantial modification is treated as the manufacturer for tax purposes. If you buy pre-formed trays and only cut them to size, you are not the manufacturer of those trays under the rules, and their weight is not attributed to you.
Information to Gather Before You Register
Registration is a single online session, and it moves faster if you have the details assembled first. You will need:3GOV.UK. Register for Plastic Packaging Tax
- A customer reference number. For limited companies this is your company registration number; for sole traders, your National Insurance number and Self Assessment Unique Taxpayer Reference; for charities, your charity registration number.
- The exact date you became liable under the backward or forward look test.
- An estimate of the total weight of finished plastic packaging you expect to manufacture or import in the next 12 months, including exempt and export-bound tonnage.
- Current business address and contact details for HMRC correspondence.
- Names and addresses of all partners, if you are registering a partnership.
Have your evidence for any recycled-content claims ready to keep alongside your records. The burden of proof sits with you, and HMRC has flagged concerns about the reliability of recycled-content claims, particularly for imported packaging. As of mid-2026 it is consulting on a potential mandatory certification requirement for mechanically recycled plastic content.6GOV.UK. Plastic Packaging Tax: Potential Certification for Mechanically Recycled Plastic Packaging Supplier declarations, purchase invoices, and any chain-of-custody documentation linking the claim back to source material are what a later audit will look for.
How to Register Online
Registration is handled through HMRC’s Government Gateway. You will need a Government Gateway user ID and password; if you do not have one, you can create an account during the process.3GOV.UK. Register for Plastic Packaging Tax The form walks you through the information listed above, produces a summary for review, and lets you submit. You receive a confirmation page on submission, and HMRC issues a Plastic Packaging Tax registration number. That number goes on all future returns, correspondence, and tax-related invoices.
Registering a Group of Companies
Two or more UK-established corporate bodies under the same control can register as a single group rather than filing individually. Each company in the group must independently meet the 10-tonne threshold and be a corporate body in its own right. Overseas businesses without a UK establishment and charitable incorporated organisations cannot join a group.7GOV.UK. Register a Group of Companies for Plastic Packaging Tax
The group appoints a UK-resident representative member to handle registration, returns, and tax payments. That member must have a permanent UK establishment and must not already sit on another Plastic Packaging Tax group. Any company in the group that already holds an individual registration has to cancel it before the group registration takes effect.
The convenience comes with shared risk. All members are jointly and severally liable for each other’s Plastic Packaging Tax obligations, so if one company fails to pay, HMRC can pursue any other member for the full amount.
Non-Resident Businesses
The same 10-tonne threshold and the same two tests apply to businesses based outside the UK that import plastic packaging on their own behalf or manufacture it in the UK. Being non-resident is not a route to exemption.2GOV.UK. Check When You Must Register for Plastic Packaging Tax
The importer is generally the consignee named on the importation documents, unless records show they are acting on behalf of someone else controlling the import. If you use Incoterms in your trading arrangements, confirm before goods ship which party is accounting for the tax. Getting this wrong is how both parties end up assuming the other one registered.
What Happens If You Don’t Register on Time
Late registration carries a “failure to notify” penalty calculated as a percentage of the potential lost revenue, meaning the tax that went unpaid during the period you should have been registered.8GOV.UK. Plastic Packaging Tax Penalties In cases of serious non-compliance without a reasonable excuse, the offence becomes criminal. A conviction can result in a prison term of up to 12 months (6 months in Northern Ireland), a fine of up to £20,000, or a charge of three times the potential tax lost.
Poor records make the position worse. HMRC can charge a fixed £500 penalty for failing to keep adequate records or to keep your registration details up to date, plus a further £40 daily penalty until the issue is resolved. All records related to the tax must be kept for at least six years from the end of the accounting period they relate to.9GOV.UK. Records and Accounts You Must Keep for Plastic Packaging Tax
Cancelling Your Registration
If your business is no longer liable, because production or import volumes have dropped well below 10 tonnes and are not expected to return, you must cancel your registration.10GOV.UK. Cancel Your Registration for Plastic Packaging Tax Cancellation is not optional. Holding an active registration when you are no longer liable creates unnecessary filing obligations and penalty exposure for missed returns. The cancellation runs through your business tax account on the Government Gateway.