UK Plastic Packaging Tax: Calculator and Compliance Guide
UK PPT explained. £228.82/tonne rate, exemptions, compostable bagasse advantage, registration requirements.
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Short answer: The UK Plastic Packaging Tax charges 228.82 pounds per tonne, the 2026-27 rate, on plastic packaging containing less than 30 percent recycled content. Uncoated bagasse and other non-plastic fibre packaging sits outside the tax entirely, which changes the landed-cost comparison for UK buyers.
The UK Plastic Packaging Tax (PPT) took effect on 1 April 2022 and now sits at £228.82 per tonne (2026-27 rate, effective 1 April 2026, per HMRC) on plastic packaging with less than 30% recycled content. For foodservice operators importing or producing plastic clamshells, takeaway containers, and lids, the tax has materially shifted the economics of compostable alternatives.
Useful first step: try the UK Plastic Tax Calculator to estimate your annual exposure.
Who pays the tax
PPT applies to:
- UK manufacturers producing plastic packaging
- Importers bringing plastic packaging into the UK (whether empty or as part of a finished product)
- Operators producing or importing more than 10 tonnes of plastic packaging per year
A foodservice chain importing plastic clamshells from China or India is liable as the importer, even if the chain operates the outlets through franchisees. Switching to compostable bagasse clamshells removes the liability entirely. If you are sourcing that switch, our guide on how to import bagasse tableware from India covers HS codes, certifications and customs documents.
What’s taxable
- Plastic packaging containing less than 30% recycled content by weight
- Includes virgin plastic clamshells, takeaway containers, lids, films, and films-with-paperboard composites
- Tax applies to the plastic component only; the paperboard or other non-plastic components are not taxed
What’s exempt
- Plastic packaging with ≥30% recycled content: verified through chain-of-custody documentation
- Plastic packaging used for medicinal products
- Transport packaging used to import goods into the UK (e.g., bulk shipping pallets, but not the consumer-facing packaging)
- Non-plastic packaging: bagasse molded fiber, pulp, paper, glass, metal are all outside the scope of PPT entirely
Not exempt, despite a widespread belief that it is: compostable, biodegradable and oxo-degradable plastic. HMRC’s guidance states plainly that plastics “include polymers which are: biodegradable, compostable, oxo-degradable”, so an EN 13432 certificate does not remove the charge. See HMRC guidance on which packaging is subject to the tax.
Why bagasse sits outside the tax entirely
Compostable plastics (PLA, PHA, PBAT) do not qualify for any exemption. Because HMRC’s definition of plastic expressly covers biodegradable, compostable and oxo-degradable polymers, switching from conventional plastic to a certified compostable plastic changes the material but not the liability. For a plastic component the only route out of the charge is 30% or more recycled content, evidenced with chain-of-custody records that HMRC can audit.
The distinction that matters for fibre is different. HMRC treats “cellulose-based polymers that have not been chemically modified” as non-plastic, which is why uncoated bagasse fibre is outside the scope of the tax while a PLA lining or a PET lid is not.
Bagasse is not plastic. It sits outside PPT scope entirely: no exemption claim to file, no documentation overhead, no classification dispute to lose.
Calculating annual exposure
Estimating PPT exposure for a typical QSR chain:
- Average plastic clamshell weight: ~25 g
- Annual containers per outlet: ~80,000
- Outlets: 50
- Total annual plastic weight: 25 g × 80,000 × 50 = 100,000 kg = 100 tonnes
- PPT exposure: 100 tonnes × £228.82 = £22,882 per year
For a 200-outlet chain, exposure quadruples to ~£91,528 annually. For chains operating in the UK with imported Chinese plastic clamshells, this is now a top-line P&L item, and switching to bagasse eliminates it entirely.
Cost-of-switching math
Compostable bagasse SKUs typically run 15-25% above virgin plastic on unit cost at FCL volumes. For the 50-outlet chain example above:
- Plastic clamshell unit cost: £0.085 each
- Bagasse equivalent unit cost: £0.103 each (+21%)
- Annual unit cost increase: £0.018 × 4,000,000 containers = £72,000
- Plastic Tax saving: £22,882
- Net cost increase: £49,118 (offset by ~32% via tax saving)
For chains importing higher-weight plastic clamshells or operating at larger scale, the tax saving alone can fully offset the unit-cost premium. The break-even point depends on plastic weight per piece and total volume.
Reporting and registration
UK PPT registration is required if you produce or import 10+ tonnes of plastic packaging in any rolling 12-month period. Quarterly returns to HMRC due 30 days after each quarter end. Records must be retained for 6 years.
Ecofy and UK PPT
Ecofy’s bagasse molded fiber products fall outside PPT scope entirely: no plastic content. PET lids on takeaway containers are plastic and would be subject to PPT, but their weight is typically 14-21 g (vs 25-40 g for full plastic clamshells), reducing the tax exposure proportionally. Most Ecofy customers switch the high-volume bagasse clamshell container and bagasse bowl SKUs to bagasse and accept the smaller PET-lid PPT exposure. Wholesale pricing is available for chains buying at FCL volumes.
