UK Plastic Packaging Tax and Paper-Based Alternatives

This guide is general information, not legal or compliance advice.

Plastic Packaging Tax (PPT) is a UK tax, run by HMRC, on finished plastic packaging components that are manufactured in or imported into the UK and contain less than 30% recycled plastic. From 1 April 2026 it is charged at £228.82 per tonne. A board box is not a plastic packaging component, because board is its heaviest material, but separate plastic parts used with it, such as patch windows and trays, can be. This guide was checked against HMRC's GOV.UK guidance on 11 September 2026.

What Plastic Packaging Tax covers

The tax came into force on 1 April 2022 under Part 2 of the Finance Act 2021. It is charged on each individual finished plastic packaging component, not on a pack as a whole. HMRC explains that components are generally manufactured separately and then assembled, and gives two examples: bottles, caps and labels for drinks, and trays, boxes and plastic windows for foods such as pies and cakes.

A packaging component is something designed to contain, protect, handle, deliver or present goods in the supply chain. Some single-use consumer items, such as gift wrap, ribbon and sticky tape, are also covered.

The tax falls on:

• UK manufacturers of finished plastic packaging components;
• importers of finished plastic packaging components, whether the packaging is empty or already filled with goods.

Who has to register

You must register if you have manufactured in or imported into the UK 10 tonnes or more of finished plastic packaging components in the last 12 months, or you expect to do so in the next 30 days. Components that are not taxed because of their recycled content still count towards that 10-tonne threshold, and records must still be kept.

The 30% recycled plastic threshold

A plastic packaging component containing 30% or more recycled plastic is not chargeable. Below 30%, the tax is due on the whole weight of the component, not just the virgin plastic in it.

The percentage is worked out on the plastic only. HMRC's example is a component made of 1 g recycled plastic, 4 g virgin plastic, 2 g aluminium and 3 g card: the recycled share is 1 ÷ 5, or 20%, so the tax is due on the entire 10 g component. HMRC also says all plastic is assumed to be virgin unless there is evidence that recycled material was used, and recycled plastic should only be used where food safety and other rules allow.

The rate, by date

Rates as listed on GOV.UK (page updated 12 February 2026). The rate has changed every April since the tax began, so always check the current figure before budgeting.

Why paper-based packaging falls outside the tax

The key rule is the predominant weight test. HMRC's guidance says a component made from several materials is a plastic packaging component only if it contains more plastic by weight than any other single substance, with paper and board, glass, aluminium, steel, other metals and wood each counted as separate substances.

In a board box, the board is almost always the heaviest material by a wide margin. The thin film of a matt or gloss lamination, the ink and the glue add very little weight. So the box component is not a plastic packaging component, and PPT does not apply to it.

HMRC's own examples show where the line sits:

What this means for custom boxes

For most custom printed boxes, the PPT question is about the extras, not the board:

• Window patches. A clear film window is a separate plastic component. An open die-cut window, with no film, avoids the component entirely. See window patching for the options.
• Trays and inserts. A vacuum-formed PET tray or a foam insert is a plastic component. A die-cut board or corrugated insert is not. Our custom inserts page covers board options.
• Outer film. Shrink film around a finished box is a plastic component in its own right.

The tax is accounted for by whichever business manufactures or imports the finished plastic component, subject to the 10-tonne threshold. If you import packaged goods yourself, you are the importer.

Exemptions and exclusions

HMRC's exemption guidance (last updated October 2022) sets out several categories. Two are exemptions, which still count towards the 10-tonne threshold:

• immediate packaging of licensed human medicines;
• components permanently set aside for a non-packaging use.

Others are excluded and do not count towards the threshold, including transport packaging used to import goods, packaging in stores for international journeys, plastic containers designed mainly for long-term storage (such as toolboxes and earbud cases), components that stay with the goods during use, and items mainly designed to be reused to present goods, such as display stands. There is also relief for packaging that is later exported. Read the GOV.UK guidance for the conditions.

Due diligence if you buy plastic components

Even if you are below the registration threshold, HMRC expects businesses that manufacture, import or buy plastic packaging components to carry out due diligence. Businesses in the supply chain can be issued with joint and several liability or secondary liability notices for tax that another business has not paid. Suggested checks include getting confirmation of the tax status of components from your supplier and, for components claimed to contain 30% or more recycled plastic, copies of any certifications or audits. HMRC suggests repeating checks at least every 12 months.

Common mistakes

• Assuming compostable plastic is exempt. HMRC treats biodegradable, compostable and oxo-degradable polymers as plastic.
• Ignoring the small parts. The board box may be out of scope while the window, tray or shrink film is in.
• Quoting a rate without its date. The rate changes each April; always state the period it applies to.
• Confusing PPT with EPR. They are separate schemes with separate thresholds. Paper and plastic components also have to be reported under UK packaging EPR if you are an obligated producer.
• Treating PPT as the only reason to change. Swapping a plastic tray for a board insert changes your component list, but make that decision on fit, protection and presentation too. Our sustainable packaging guide covers the wider picture.

If you want to explore a board-only construction, say so in your quote request and we will tell you which window and insert options suit your product.