b'Partner News Summer 2021 17EnterpriseFrom April 2022, all businesses tradingThis will clearly depend on the products in the UK that use more than 10 tonnesyou produce and/or sell so reviewing your of plastic packaging a year may need topackaging needs against currently available register for and pay the Plastic Packagingpackaging solutions is an essential task. tax (PPT) at 200 per tonne. Here are fiveRetailers may also choose to move away key steps you should consider to get yourfrom suppliers whose goods are packaged5. Design your monitoring, control business ready. in virgin plastic to reduce their exposureand reporting processesto the new tax, for example, bags madeFor many large businesses, the reality is of 100% recycled polythene are alreadythat the PPT will bring new administrative available and their cost will come downrequirements. Even if you use the most over time. However, it may be more difficultenvironmentally sensitive packaging for food manufacturers due to potentialpossible, there will still be a need to 1. Check if your business will be affected contamination issues. document this on an ongoing basis so that If the goods you produce and/or sell useyou can prove to HMRC that there is no high volumes of plastic packaging on routeneed for you to register for the PPT.to the consumer, it is quite likely that your business will be affected by the new tax.Inevitably, for some businesses it will not Even if you are a multinational businessbe possible to change supply chains and not manufacturing in the UK, if you are the3. Consider new packaging solutions packaging materials completely by April importer bringing packaged goods into theIf there are no current packaging solutions2022 so they will need to register for the UK, the tax may apply. that work acceptably without the exclusivePPT. To correctly report on the weight of use of virgin plastic, it may be time tomaterials used and pay the right amount Of course, plastic packaging is very lightresearch new packaging solutions thatof tax, such businesses will need to keep weight, but where it makes up the majorityare both greener and more cost-effectiveprecise records of the weight of virgin of the packaging by weight (for exampleoverall. Projects to develop innovativeplastic used for each item sold so that food wrappings and packaging for manypackaging using new materials are likelyplastic volumes can be calculated for PPT other small retail goods), it has to beto qualify for R&D tax reliefhelping toreturns. Therefore updating stock control counted towards the businesss annual 10reduce the initial cost of moving to newsystems to capture and report on this data tonnes lower limit for registration. Mostpackaging and the new capital allowancewill be essential to ensure a robust audit businesses will never have had to considersuper deduction could help to reduce thetrail is available if HMRC requests it. the overall weight of packaging they use inupfront cost of acquiring any new packaging a year before or the weight of each differentmachinery required. Were here to helptype of material used. But now is the timeIn the run up to April 2022, we can help you to start assessing this with your packagingget to grips with the PPT through external department or suppliers so that you canreviews and impact assessments, staff come to a realistic assessment of whethertraining and business assurance reports or not your business will need to registerabout your PPT exposure as well as advice by April 2022: failure to register carriesand support on R&D claims as you develop financial penalties. 4. Engage with your supplierswhatnew packaging solutions.are they doing on PPT?Businesses that dont package goods in- For help and advice please get in touch house will need to start to work with theirwith: Aman Nirwal, Senior Consultantsuppliers to manage the potential costs ofaman.nirwal@bdo.co.ukthe new tax. Depending on your commercial+44 (0)7811 739 791 2. Review your current packagingleverage with suppliers, it may be possible needs and materials to encourage or request or even demand The whole purpose of the tax is tothat they switch to PPT compliant plastic or encourage businesses to use less virginother environmentally responsible packaging plastic: packaging that contains 30% orbefore April 2022 to reduce your exposure more recycled plastic does not need to beto the new levy.counted when it comes to registering for and paying the tax. So could you switch to less environmentally damaging packaging?There are many different packaging options available to businesses and it may now be cost effective to move away from using virgin plastic.'