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Expert Guide

Plastic Packaging TaxEssential Records Guide

Everything you need to know about keeping proper records and accounts for Plastic Packaging Tax. Written in simple English, organized for easy understanding.

10 Sections
Complete
Reading Time
15 mins
Difficulty
Beginner
Updated
2023

Overview

If you're registered for Plastic Packaging Tax, you must keep accounts and records to support the information you submit in your quarterly tax returns.

Your accounts must show how you've worked out the figures you submit on your return.

Your records must show the evidence to support these figures.

Key Requirements

Your accounts and records must:

  • Be kept for at least 6 years from the end of the accounting period
  • Record weight in tonnes, kilograms, and grams
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Accounts you must keep

You must keep accounts showing how you've worked out each entry on your quarterly tax return. Where relevant, your accounts must include:

Packaging breakdown

Weight of plastic packaging components finished or imported in each period

Export records

Weight of plastic packaging exported where tax was deferred

Credit claims

Weight of packaging for which credits are claimed

Adjustments

Corrections made to previous periods with dates

Product Line Organisation

Keep accounts by 'product line' - groups of plastic packaging components produced to the same specification.

Storage Requirement

Keep your accounts in writing or digitally for 6 years from the end of the accounting period.

Records you must keep

You must keep records as evidence to support your tax returns. Records must be kept by product line and show:

Evidence of any exemptions from the tax

Recycled plastic content (if 30% or more)

Example

If claiming exemption for human medicine packaging, keep the medicine licence numbers as supporting evidence.

Recycled plastic records

Components with 30% or more recycled plastic aren't taxed. To claim this exemption, keep records showing:

1

How you calculated the recycled plastic percentage

2

Supporting evidence that recycled plastic was used

3

Dates when components were finished or imported

4

Which product lines or production runs it relates to

5

Accurate proportion of recycled plastic

6

Source of the recycled plastic

What counts as sufficient evidence?

Product specifications showing recycled content plus due diligence check details.

If specifications change, keep separate evidence for each version.

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Records for export intentions

To defer paying PPT on components you plan to export, keep records showing your export intention. Use documents like:

Documents used for other tax or duty

Sales contracts or orders identifying the goods

Records must include:

  • 1
    Date at or before production/import time
  • 2
    Details to identify the components to export
  • 3
    Weight of components intended for export

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Documents you can use as evidence

Keep records of all documents for your PPT return, credits, or exemptions:

Production specifications

Supplier contracts

Certificates of conformity

Business accounting records

Quality assurance audits

Sales and purchase invoices

Environment Agency accreditation

Export documentation

Creating invoices

Good news

There's no mandatory requirement to show PPT on invoices. You're encouraged to make it visible to help customers make informed choices.

VAT rules

PPT is paid once when packaging is finished or imported. It doesn't pass down the supply chain like VAT. If you increase prices to cover PPT costs, VAT applies to the total new price.

Important

VAT is calculated on your full selling price, including any PPT cost increases.

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