A taxing issue: HLP Klearfold creates guide to UK Plastic Packaging Tax as confusion surfaces

07 Mar 2022 --- HLP Klearfold (HLP) has created a simple guide for understanding the upcoming UK Plastic Packaging Tax amid reports of growing confusion around how the law will be enforced.

Amanda Stokes, business development director at the leading transparent packaging supplier, tells PackagingInsights the biggest concern for businesses is a lack of clear information on how the tax will be calculated and collected.

“We’ve had a number of customers come to us confused and looking for help with understanding how the tax will be calculated. The only pieces that have been consistent are the 30% recycled content figure and the April 2022 implementation date,” she says.

The company has designed a traffic light system to help businesses understand who will not have to pay the plastic packaging tax (green), who is exempt from paying the tax for a specific reason (amber) and who is eligible to pay the tax (red).

Rising interest, growing concern
According to HLP, interest in the upcoming tax has risen dramatically in the last three months. The search terms “new plastic tax” and “new plastic packaging tax” increased by 50% and 67%, respectively.

However, people also appear to be feeling unprepared for the tax and looking for support and guidance, as seen by the 23% rise in searches for “plastic packaging tax guidance” and 22% rise for ‘HMRC plastic packaging tax guidance’ over the last three months.

HLP’s tax guidance empowers businesses to understand every aspect of the law, including:

• Why the tax is being introduced
• How to calculate the recycled plastic content of plastic packaging
• A traffic light system to help businesses understand their eligibility
• Information on what businesses need to report to HMRC
• How HLP can support those who produce recycled PET (rPET) from recycled plastic

The company indicates that once businesses have used the guide to understand the plastic packaging tax and how it impacts them, it hopes to encourage those who are eligible to consider how they can improve their recycled plastic production to avoid the tax and become more environmentally sustainable.HLP’s guide can help businesses understand how the tax will be calculated.

“The way to a [environmentally] sustainable future is for plastic to be seen by all as an asset. It should be valued as such rather than seen as a second-rate material to be thrown away,” says Stokes.

“We manufacture in China, and currently, there is sufficient recycled material available to meet our needs,” she adds. “HLP buys in and converts PCW rPET granules into extruded sheet ready for printing. The granules come from waste that is collected and cleaned.”

A welcome tax
HLP welcomes the Plastic Packaging Tax, which will apply to plastic packaging that has been manufactured or imported into the UK. It is a step forward in the battle for environmentally sustainable packaging and manufacturing, as research shows that plastic packaging currently accounts for almost 70% of plastic waste, it says.

HLP recognizes the detrimental impact plastics are having on the environment, offering rPET packaging made from 100% recycled consumer waste that is also recyclable. Its products are also SCS-certified, verifying its commitment to the environment.

Both the SCS certificate and recycled plastic waste packaging can exempt businesses from the Plastic Packaging Tax.

“The introduction of the plastic packaging tax is a necessary step toward more [environmentally] sustainable packaging,” continues Stokes.HLP is a leader in clear packaging.

“As with any new tax or regulation, it takes time for businesses to understand what exactly is going to happen and how it will affect them, but there is no time to lose when it comes to environmental taxes.”

“At HLP, we are committed to the zero waste revolution, and that involves ensuring businesses are educated on issues such as plastic waste.”

Last year, Veolia UK found 83% of businesses asked were not even aware of the impending tax. “Eighty-three percent is high, and maybe more communication should come from the government on it [the tax], then businesses can prepare themselves for next year,” Timothee Duret, director of sustainable technology at the waste management company, said at the time.

Packaging suppliers Coveris and Paccor and Mondelēz International’s Cadbury’s chocolate brand are among the growing list of companies introducing UK tax-compliant packaging solutions.

By Joshua Poole

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