What is Plastic Packaging Tax (PPT)

Extended Producer Responsibility (EPR): an additional packaging cost to plan for

From 1 October 2025, a new environmental levy called Extended Producer Responsibility (EPR) will begin to apply to larger organisations that supply or import packaging. This policy follows the ‘polluter pays’ principle and is part of the UK’s wider strategy to reduce packaging waste and promote more sustainable materials.

Unlike the Plastic Packaging Tax, which focuses on the recycled content of plastic, EPR applies to all types of packaging materials – including plastic, glass, cardboard, aluminium, steel, wood, rubber, and ceramics.

Under the reformed EPR scheme:

• Larger organisations (turnover of £2 million+ and handling over 50 tonnes of packaging annually) will face new waste management fees starting in October 2025.
• These fees will vary based on the type and recyclability of packaging – with higher fees for less environmentally friendly materials. Fees will be higher for packaging that is harder to recycle, such as composite materials, black plastic, or film, and lower for packaging that is widely recycled, like plain cardboard or clear PET.
• The first reporting deadline for July to December 2024 data is 1 April 2025.
• Fees will fund the collection, sorting and recycling of packaging waste by local authorities.

Will EPR apply to your business?

If your business imports or supplies packaged goods, you may be affected if all the following apply:

• You’re not a charity, and are an individual business, subsidiary or group;
• You have a turnover of £1 million or more (based on latest annual accounts);
• You supply or import more than 25 tonnes of packaging in 2024;
• You carry out relevant activities -such as placing packaged goods on the market, importing products in packaging, or supplying empty packaging.

Small organisations (turnover £1m–£2m and 25–50 tonnes) will still need to report data and pay a registration fee, however they won’t need to pay the waste management fees.

How does EPR interact with PPT?

While PPT charges a tax on plastic packaging with less than 30% recycled content, EPR places costs on all types of packaging materials. Together, they aim to push businesses toward more sustainable packaging choices and better lifecycle management.

With increased scrutiny on packaging waste and environmental accountability, finance directors and operations teams should be reviewing:

• What data they’ll need to collect.
• How their supply chains assign responsibility for packaging compliance.
• Opportunities to reduce packaging volumes or switch to more recyclable options.

How do I pay my PPT return?

Once you have registered to pay PPT, you must submit a return and pay any tax due by the last working day of the month after the end of the tax period. Your return must cover an accounting period, with the next accounting period beginning, e.g. 1 January to 31 March and the deadline being the 30 April.

Tax returns can be submitted on the Gov.uk website using your Government Gateway User ID and password which would have been given to you when you first registered for tax. We advise you keep records of which packing and components you must pay PPT on, the weight of the package you import, and a record of your accounts to make the tax return process easier to manage.

If you require any further guidance on Plastic Packaging Tax  and EPR or need help with understanding the updated regulations, use the form below to contact one of our experts…