Eco-friendly packaging for UK small businesses: what to look for

What to take away

Plastic Packaging Tax applies to plastic packaging components with less than 30% recycled content once you handle 10 tonnes or more in a 12-month period.
EN 13432 backs a compostable claim, and it refers to industrial composting rather than a home compost bin.
Few UK councils collect compostable film at the kerbside, so check your own area before ordering in volume.
Extended producer responsibility ties disposal fees to the materials you place on the market.

Why US eco-packaging advice travels badly

Advice on eco-friendly packaging for small businesses is easy to find, and most of it is written for the United States. American guides lean on corn starch mailers and home compost logos.

UK buyers face a different rulebook. Plastic Packaging Tax is charged by HMRC on plastic packaging made in or imported into the UK.

The packaging waste regulations sit alongside it, and councils decide what goes in your bin. A material praised in a US blog can be unrecyclable at the kerbside where you live.

Plastic Packaging Tax: what small firms pay

HMRC charges Plastic Packaging Tax on plastic packaging components that contain less than 30% recycled plastic. The threshold is 10 tonnes of finished components over 12 months. Below that figure you do not register, even if every mailer you post is virgin plastic.

Plastic Packaging Tax key figures

£223.69per tonne from 1 April 2025
10 tonnesfinished components threshold over 12 months
30%recycled plastic needed to avoid tax

The figure above shows the 2025 to 2026 rate of £223.69 per tonne. From 1 April 2026 the rate is £228.82 per tonne, according to HMRC. Two design choices change the maths. Using more than 30% recycled plastic takes a component out of the tax entirely, and so does removing plastic from the pack.

Imports count too. Buy plastic mailers or air pillows from an overseas marketplace and you become the importer, which makes the tax yours to account for.

The tax sits alongside producer responsibility. Businesses handling packaging above the thresholds must meet the packaging extended producer responsibility rules in the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024, which replaced the 2007 regulations.

The Environment Act 2021 provides the powers for extended producer responsibility, which ties disposal fees to the materials you put on the market.

Our guide to EPR compliance for online sellers explains how the reporting thresholds affect small firms.

What EN 13432 actually certifies

EN 13432 is the standard behind most compostable packaging claims in Europe, and BSI publishes it in the UK as BS EN 13432. It covers industrial composting and anaerobic digestion, not a garden bin: the material must reach 90% biodegradation within six months and 90% disintegration within 12 weeks.

Two limits catch small brands. A certificate covers one specification, so a change of film gauge or colour can void the claim. Home compostable is separate certification, usually verified through a scheme such as OK Compost HOME.

Some wording is unsafe. Biodegradable has no agreed test behind it, and any green claim must be substantiated under the CMA's Green Claims Code.

Compostable, recyclable or reusable

Kerbside acceptance varies by council, so check your own area before ordering.

Packaging material kerbside reality

Kraft paper mailer

Where it works: Light, dry goods
Kerbside collection: Most councils
Watch out for: Needs waterproof liner

Compostable starch film

Where it works: Industrial composting access
Kerbside collection: Rarely collected
Watch out for: Ends up in general waste

Recycled LDPE mailer

Where it works: Clothing, soft goods
Kerbside collection: Not kerbside
Watch out for: Fossil feedstock

Where it works

Kraft paper mailer: Light, dry goods
Compostable starch film: Brands with access to industrial composting
Recycled LDPE mailer: Clothing and soft goods
Reusable rigid box: Beauty and gifting

Kerbside collection in the UK

Kraft paper mailer: Accepted by most councils
Compostable starch film: Rarely collected
Recycled LDPE mailer: Not kerbside; some supermarket points accept it
Reusable rigid box: Not applicable

Watch out for

Kraft paper mailer: Needs a waterproof liner in rain
Compostable starch film: Ends up in general waste without a local composter
Recycled LDPE mailer: Still made from fossil feedstock
Reusable rigid box: Higher unit cost and return handling

Five checks before you approve a sample

Ask the converter for the test report behind a compostable claim, naming the laboratory and the date.
Match that certificate to the exact film gauge, colour and print finish you plan to order.
Check your council's kerbside list rather than a national recycling logo on the pack.
Weigh a year of packaging to see whether Plastic Packaging Tax applies before committing to a 12-month order.
Order samples from two suppliers and test them in a live pack-out; our guide to comparing packaging quotes and samples covers what to ask for.

Common questions

Does Plastic Packaging Tax apply if I only sell online?

Yes, if you manufacture or import plastic packaging components above the 10-tonne threshold. Selling online rather than through shops makes no difference to the tax.

Is compostable packaging collected at the kerbside?

Usually not. Compostable films need industrial composting, and most councils do not collect them with garden waste or dry recycling. Check the local list before printing a recycling message on the pack.

What should a supplier show me for a recyclable claim?

A dated test report or declaration of conformity for the exact specification, and a plain statement of which recycling stream takes it. If paper is the material, ask whether it carries a plastic or wax barrier.

Is paper always the better choice?

Not automatically. A paper mailer with a plastic liner can be harder to recycle than a plain plastic one made with 30% recycled content. Match the material to the journey the parcel actually makes.