As predicted in the Digest from our meetings with HMRC, the number of businesses registering for the Plastics Packaging Tax, which came into force 1 April, has been low. According to a report from solicitors’ Pinsents, take up is even lower than we anticipated, with less than 5% of the estimated 20,000 that would be affected by the tax having registered
The Pinsents' report warns many businesses are unaware and not sure of the scope of the tax or what exactly constitutes plastic packaging. We have always felt HMRC’s PR and communication generally was far too low. For example, there was no campaign in the business sections of national newspapers. We also feel there is a greater gap in awareness outside the food and drink sectors.
Pinsents also revealed some of its clients were unaware that they were responsible for doing due diligence on their supply chain, with businesses held jointly liable with suppliers or customers who fail to pay the tax correctly, even though there is a criminal risk for not doing so.
No doubt there are some who are aware but have chosen not to register, but unless HMRC steps up its communication to more than hoping eligible businesses discover the tax if they happen to be browsing the HMRC website, then we will find a tiny fraction complying while the vast majority free rides.
We’d love to hear from you whether it’s about potential membership, a query or question about foodservice packaging or if you’d like to talk to someone. Use our contact form and we’ll get back to you.