The tax comes into force from 1 April 2022 and applies a tax to some plastic packaging manufacturing and imports (or packaging for which plastic is the main component).

The reason behind this tax is to provide a clear, economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging. ‘This is predicted to stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfills or incineration,’ said accountants PKF Smith Cooper.

This tax has been planned since 2018 and applies to plastic packaging manufactured in, or imported into the UK, that contains less than 30% recycled plastic.