UK Plastic Packaging Tax Rate Increase 2026: What Businesses Need to Know

The UK Plastic Packaging Tax (PPT) is increasing from 1 April 2026. Here’s everything you need to know.

What is the UK Plastic Packaging Tax?

Introduced in April 2022, the UK Plastic Packaging Tax is a charge on plastic packaging components that contain less than 30% recycled plastic content. It applies to businesses that manufacture or import 10 or more tonnes of finished plastic packaging within a 12-month period.

The tax is designed to drive demand for recycled plastic and encourage businesses to design more sustainable packaging.

What is the New PPT Rate for 2026?

From 1st April 2026, the Plastic Packaging Tax rate will rise to £228.82 per tonne – up from £223.69 per tonne in 2025.

This increase follows the government’s 2023 commitment to raise the tax annually in line with the Consumer Price Index (CPI), meaning businesses should plan for similar incremental rises in the years ahead.

Key Thresholds and Scope: What Stays the Same

While the rate is changing, several core elements of the tax remain unchanged:

• Registration threshold: 10 tonnes of finished plastic packaging manufactured in or imported into the UK within a 12-month period.
• Scope: Applies to plastic packaging with less than 30% recycled plastic content.
• Mandatory registration: Required even is your packaging exceeds 30% recycled content and no tax is actually due.

Visit our Recycled Content page here.

Who Does the UK Plastic Packaging Tax Apply To?

The PPT applies to any UK business that:

• Manufactures finished plastic packaging components in the UK, or
• Imports finished plastic packaging components into the UK

This includes packaging filled before import, as well as unfilled packaging brought into the country.

If you exceed the 10-tonne threshold in any 12-month rolling period, you must register with HMRC – regardless of whether the packaging you product qualifies for an exemption.

Compliance Requirements: What Businesses Must Do

1. Register with HMRC

If you meeting the 10-tonne threshold, registration is mandatory. This applies even if all your packaging contains more than 30% recycled content.

2. Submit Quarterly Returns

Registered businesses must file returns and pay any tax owed within 30 days of the end of each quarter.

3. Maintain Records for Six Years

You must keep records including:

• Proof of recycled content
• Weight data for packaging components

Accurate record-keeping is essential, particularly given upcoming changes to the certification of recycled content claims.

PPT Exemptions: Is Your Packaging Excluded?

Not all plastic packaging is subject to the tax. Several important exemptions exist:

Human Medicines (Immediate Packaging)

The immediate packaging of licensed human medicinal products is exempt. This applies to packaging in direct contact with the medicine at the point of production — such as blister packs, tablet bottles, and vials.

Important caveats:

• Veterinary medicines are not exempt
• Secondary packaging (e.g. outer boxes or shrink wrap) is not covered
• Exempt medicinal packaging must still be included in your threshold calculation and reported on quarterly returns

Transport Packaging for Imports

Plastic used to import multiple sales units into the UK — such as pallet wrap or plastic pallets — is exempt. Note this does not apply to transport packaging used domestically within the UK.

Packaging Integral to the Product

Where packaging cannot be separated from the product for it to function — such as inhalers, tea bags, or printer cartridges — it is excluded from the tax.

Long-Term Reusable Packaging

Items designed primarily for long-term reuse and storage, such as toolboxes, first aid boxes, or DVD cases, are excluded.

International Travel Stores

Packaging for goods held in stores aboard international aircraft, ships, or trains is exempt, provided those goods are not released into the UK.

What’s Changing Beyond the Rate Increase?

The April 2026 rate change is not the only development businesses should be tracking. Several significant policy changes are on the horizon.

• Mandatory Certification for Recycled Content Claims (Consultation in Early 2026)

The government plans to consult on mandatory certification for businesses claiming the 30% recycled content exemption. This is aimed at tackling fraudulent claims — particularly for imported materials — and is likely to result in more rigorous evidential requirements.

Action required now: Review how you evidence recycled content in your supply chain, and prepare for stronger documentation standards.

• Mass Balance Approach for Chemically Recycled Plastics (2027)

From 2027, the Mass Balance Approach (MBA) is expected to be introduced, allowing chemically recycled plastics to be counted towards recycled content calculations. This could open up new compliance pathways for businesses currently unable to meet the 30% threshold with mechanically recycled materials.

• Pre-Consumer Waste Exclusion (2027)

Also from 2027, pre-consumer waste — such as manufacturing offcuts — will no longer count as recycled content for PPT purposes. Businesses currently relying on this to meet the 30% threshold will need to source alternative recycled materials.

How to Prepare for the 2026 PPT Changes

Here’s a practical checklist for businesses ahead of 1 April 2026:

• Confirm your registration status — are you above the 10-tonne threshold?
• Review your packaging portfolio — identify components with less than 30% recycled content
• Update your cost modelling — factor in the new £228.82 per tonne rate
• Audit your recycled content evidence — prepare for mandatory certification requirements
• Plan for 2027 — assess the impact of the pre-consumer waste exclusion on your current recycled content claims
• Review exemption eligibility — ensure exempt categories are correctly identified and reported

How the PPT Cost Will Appear on Your BlueSky Invoice

Where the Plastic Packaging Tax applies to your order, the cost of the tax will be incorporated into your product price. You will not see it listed as a separate line item. Instead, your invoice will include the following written statement:

“The cost of the plastic tax is included in the price.”

If you have any questions about how the PPT affects the pricing of a specific product, please don’t hesitate to get in touch with our team.

How BlueSky Can Help

Navigating the UK Plastic Packaging Tax — and the regulatory changes ahead — requires accurate data, robust record-keeping, and a clear compliance strategy.

At BlueSky, we help businesses understand their PPT obligations, optimise their packaging for sustainability, and prepare for upcoming legislative changes. Whether you’re just approaching the registration threshold or managing a complex multi-site operation, our team is here to help.

Get in touch with the BlueSky team today to discuss how we can support your PPT compliance ahead of the April 2026 changes.

Frequently Asked Questions

When does the new PPT rate take effect? The new rate of £228.82 per tonne applies from 1 April 2026.

Do I have to register even if I don’t owe any tax? Yes. If you meet the 10-tonne threshold, registration with HMRC is mandatory even if all your packaging is exempt or contains more than 30% recycled content.

Is my company’s imported packaging subject to PPT? If you import finished plastic packaging components into the UK and exceed the 10-tonne threshold, yes — the tax applies to components with less than 30% recycled content.

What happens if I use chemically recycled plastic? Currently, chemically recycled content can only be counted using the Mass Balance Approach from 2027. Until then, standard mechanical recycling evidence is required.

Are medical device packages exempt? Medical devices are generally not covered by the human medicines exemption unless the device is a container for a licensed medicine. Always seek specific guidance if you’re unsure.

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