Plastic Packaging Tax packaging materials: unboxing choices

What to take away

Key findings

What the Plastic Packaging Tax charges and who pays

The Plastic Packaging Tax is a UK tax on plastic packaging that contains less than 30% recycled plastic. It applies to packaging manufactured in the UK or imported into the UK. The tax is charged per tonne of finished plastic packaging components. HMRC collects it.

The tax follows weight, so 10,000 boxes that each hold a 12-gram plastic insert put 120 kg of plastic, or 0.12 of a tonne, into the taxable total when the inserts fall below the recycled content line. HMRC does not recognise estimated weights, so weigh the components rather than guessing. The tax came into force on 1 April 2022, and HMRC publishes the current rate and the detailed rules in its Plastic Packaging Tax guidance.

You must register for the tax if you have manufactured in the UK or imported into the UK 10 tonnes or more of finished plastic packaging components in the last 12 months, or if you expect to do so in the next 30 days. That 10-tonne line is the HMRC plastic packaging tax threshold. Below the threshold you do not have to register, though it is sensible to keep weight records in case your volumes grow. Packaging fees under extended producer responsibility are a separate charge, and our article on how EPR fees sit alongside the tax explains the difference.

Who pays in practice? UK manufacturers pay on production. Importers pay on the plastic packaging they bring in. If you buy plastic packaging components from another business, HMRC's due diligence guidance says to check your supply chain and keep a record of the checks. Packaging that is not plastic is outside the tax, and tax already paid on packaging that is later exported can be claimed back as a credit on the return.

For British brands, the tax changes the maths on unboxing materials, and that feeds into the packaging unit cost UK buyers see from suppliers.

How HMRC applies the 30% recycled content threshold to imported and UK-made packaging

The threshold is 30% recycled content. If a plastic packaging component contains 30% or more recycled plastic, it is not subject to the tax. If it contains less than 30%, it is taxable. HMRC's formula in its weight guidance divides the weight of recycled plastic used by the combined total weight of all plastic used, then multiplies the outcome by 100. As an arithmetic illustration, 3 kg of recycled plastic in a component made from 10 kg of plastic in total gives 30%, which is on the line and so not chargeable.

For UK-made packaging, the producer must know the recycled content of each component. HMRC expects records that show the percentage, and records must be kept for at least 6 years from the end of the accounting period. If you blend virgin and recycled plastic, you need to show the recycled share. The test applies to each component, not to the whole pack.

For imported packaging, the importer is responsible for the tax. The same 30% test applies. You cannot rely on a supplier's marketing claim alone. You need documentation that shows the recycled content. HMRC's due diligence guidance includes getting signed documents from your supplier confirming that the tax has been properly accounted for, and says to carry out those checks at least every 12 months. If you do not carry out those checks or keep enough records of them, you could be held jointly and severally liable, or secondarily liable, for unpaid tax. If you import plastic packaging components already filled with goods, you do not need to include the weight of the goods inside.

There are exemptions, set out in HMRC's guidance on exempt packaging. The tax does not apply to packaging that is not plastic, such as paper board or glass. Plastic packaging manufactured or imported for the immediate packaging of licensed human medicinal products is not subject to the tax, and the same goes for plastic packaging components permanently recorded as set aside for non-packaging use. HMRC expects the set-aside exemption to apply to a small number of highly specialised products and asks for clear evidence of any claim. Both categories must still be included when you work out the total weight of packaging manufactured or imported. The tax is not charged on transport packaging (also known as tertiary packaging) used in the delivery of goods into the UK. If you have paid the tax on packaging that is later exported, you can claim a credit on your tax return.

Small parts need the same care. Inserts, sachets and labels made of plastic are components too, so record the weight and recycled content of each one rather than assuming it is too light to count. Check the current guidance because HMRC updates it.

For packaging buyers, the practical point is this: ask for the recycled content percentage in writing. If it is below 30%, add the tax to your cost model. If it is at or above 30%, you can avoid the tax, but you still need the evidence.

Material and format decisions shaped by the tax

British brands face recurring material and format decisions. Each one changes the tax position, unit cost and unboxing experience.

These are not abstract choices. They show up in quotes from suppliers, in compliance records and in the photos customers post online. The sections below take each one in turn.

Choice one: switching unboxing inserts to recycled-content board

Paper board is not plastic, so it falls outside the Plastic Packaging Tax. That makes recycled-content board an easy first move for unboxing inserts. A printed card insert, a belly band or a folded leaflet can replace a plastic tray or a plastic sleeve.

The unboxing quality often improves. Board holds print well, feels substantial and can be recycled in kerbside collections. The unit cost picture is mixed. Board can be cheaper per unit than a plastic insert, but it depends on print, thickness and finishing. Track paper board and plastics prices separately from your packaging marketing spend.

A worked example helps. Suppose a brand uses a plastic insert weighing 12 grams per box. If the plastic contains less than 30% recycled content, the chargeable weight is 12 grams a box, or 0.12 tonnes across 10,000 boxes. Switching to a 15 gram recycled board insert removes the tax on that insert. The board insert may cost more per unit, but the tax saving can narrow the gap, so compare the supplier's board price with the plastic price plus the tax. The cost model further down runs the same comparison at a volume above the registration threshold.

Do not add board just for the tax saving if it makes the pack heavier than needed. Keep the insert size honest.

For content planners, board inserts are easy to film. They sit flat, they show print clearly and they do not create the crinkle of plastic. That matters for unboxing videos shot on a phone.

Choice two: rethinking plastic mailers and void fill

Plastic mailers are the classic taxable item. A grey mailing bag with no recycled content is plastic packaging. If it contains less than 30% recycled plastic, it is taxable. That applies whether you buy it from a UK converter or import it.

Void fill is the same story. Air pillows, bubble wrap and loose fill made from plastic can be taxable if they fall below the threshold. Some loose fill is made from starch or paper, which is not plastic. Those alternatives avoid the tax.

Switching to paper void fill changes the unboxing feel. Paper is quieter than air pillows. It can be printed or left plain. It compacts differently, so you may need more volume to fill the same space. That affects the unit cost.

Recycled-content mailers are available. A mailer with 30% or more recycled plastic avoids the tax. But the recycled content can change the feel. Some recycled mailers are stiffer or have a different surface. Test them with your packing team before a full switch.

Imported mailers carry the same test. If you import mailers directly, you are the importer for tax purposes. You need to know the recycled content and keep records. Ask the supplier for the recycled content in writing, and for signed documents confirming the tax has been accounted for, as HMRC's due diligence guidance describes.

For finance teams, the key question is the break even. A recycled-content mailer may cost more per unit, but if it avoids the tax, the total cost can be lower. Use the packaging marketing cost guide to line up material costs with your wider budget.

Choice three: recycled-content films and their unboxing feel

Films are plastic packaging. Poly bags, shrink wrap and wrapping film all count. If the film contains less than 30% recycled content, it is taxable. Recycled-content films are available, but they behave differently.

Recycled polyethylene film can be slightly hazier than virgin film. It may have a different stretch and seal performance. That matters on packing lines. It also matters for unboxing, because the film is often the first thing a customer touches.

A clear film shows the product. A hazy film can look duller in photos. For brands that rely on unboxing content, that is a real trade off. Some brands switch to paper wrap or tissue for the outer layer and keep film only where needed.

Recycled-content films that meet the 30% threshold avoid the tax. But you need evidence from the supplier. A claim on a website is not enough. Ask for a certificate or a specification sheet: HMRC's record-keeping guidance names production certificates and certificates of conformity as documents that can show the proportion of recycled plastic.

Unit costs for recycled film can be higher than virgin film. The gap varies by supplier and specification, so compare quotes from more than one supplier and more than one date rather than relying on a single quote.

There is also a compliance angle. If you import film, you are the importer. If you buy from a UK producer, they should account for the tax. Make sure the contract says who pays.

Choice four: mixed-material packs and the compliance trap

Mixed-material packs are the hardest to manage. A pack might combine a plastic window, a board outer and a plastic laminate. The plastic components are taxable if they fall below 30% recycled content. The board is not.

The trap is assuming the whole pack is exempt because it is mostly paper. HMRC looks at each plastic component, and the tax is charged on components that contain less than 30% recycled plastic. A plastic window is a component in its own right and is taxable on its own if it has less than 30% recycled content. A plastic laminate bonded to board can also count.

You need to separate the components in your records. That means bills of materials that list each plastic part, its weight and its recycled content. Without that, you cannot show compliance.

Design changes can help. Removing a plastic window can remove a taxable component. Replacing a plastic laminate with a water-based coating can do the same. These changes often improve recyclability, which helps with customer perception.

Simpler, single-material packs are easier to recover, and easier to explain on a label.

For unboxing, mixed-material packs can look premium. But they can also confuse customers about what to recycle. Clear labelling and simple construction reduce that confusion. That is a content opportunity as well as a compliance one.

Choice five: refill and reuse formats under the tax

Refill and reuse formats change the tax picture. A refill pouch is still plastic packaging if it is made of plastic. If it contains less than 30% recycled content, it is taxable. HMRC sets out specific classification rules for what counts as packaging, so check them before you rely on a reusable container being outside the tax.

Reuse systems often need durable containers. Those containers may be plastic, but they are not single-use packaging. The tax treatment depends on how they are used and whether they are classified as packaging. Get advice if you are building a reuse scheme.

Refill formats can reduce material per use. That lowers the tax base over time. But the upfront container cost is higher. The unit cost per use can still be lower if the container is reused many times.

Unboxing quality changes with refill. A refill pouch is lighter and less dramatic than a box. Some brands send a welcome kit with the first order, then refills in simpler packaging. That keeps the unboxing moment while cutting material.

For British brands, refill also plays well with green claims rules. The ASA and CMA watch environmental claims. Do not claim a pack is fully recyclable if it is not. The hidden costs of packaging marketing include the cost of getting claims wrong.

Imported refill containers carry the same test as other imported packaging. If you import them, you are the importer. Check the recycled content and keep records.

Putting the tax rate into the cost model

The rate is set per tonne and has risen each 1 April since 2023. Take the rate for the year in which you produce or import from HMRC's current guidance, because it changes.

The Plastic Packaging Tax rate per tonne has risen each April since it started in 2022, from £200.00 to £228.82. Source: HM Revenue and Customs, Plastic Packaging Tax: steps to take.

The cost example below uses illustrative quantities and unit prices. They are not HMRC figures or supplier quotes, so replace them with your own. Assume a brand buys 1,000,000 boxes a year, each with a 12-gram plastic insert containing less than 30% recycled plastic, and that these inserts are the only plastic packaging it makes or imports. That is 12,000 kg, or 12 tonnes, of finished plastic packaging components, which is above the 10-tonne registration line. At £228.82 a tonne (the rate from 1 April 2026) the tax is 12 x £228.82 = £2,745.84, or just over a quarter of a penny a box. For reference, 10 tonnes at that rate is £2,288.20 of tax.

Now compare costs for those 1,000,000 boxes, with unit prices invented for illustration:

The board costs £17,254.16 more in this example. The tax saving covers about 14 per cent of the £20,000 gap in unit prices, so the choice rests on the supplier's price and the unboxing effect, not on the tax alone. The tax matters more for heavier items, such as mailers, and for brands near the 10-tonne threshold, where registration brings administrative duties.

The 12-gram insert from the earlier example is a different case. At 10,000 boxes it adds up to 0.12 tonnes, far below 10 tonnes, so those inserts alone would not trigger registration. That example is weight arithmetic only.

How to report and pay

Once registered, you submit a return to HMRC 4 times a year. You must submit the return and pay any tax due no later than the last working day of the month following the end of the accounting period you are reporting. For example, if an accounting period ends on 30 June, the deadline is the last working day of July. All weights on the return are given in kilograms and rounded down to the nearest kilogram.

Tax position and unboxing quality compared across the five choices

The figure and the table below compare the five choices on tax position, unit cost direction and unboxing quality. They are a starting point, not a quote. Actual costs depend on volume, print and supplier.

Use the table to frame supplier conversations. Ask for the recycled content percentage, the component weight and the tax treatment. Then compare the total cost, not just the unit price.

Material prices move over time, so a single quote can mislead if it is not updated.

For finance teams, build a simple model. List each component, its weight, its recycled content and its tax status. Then add the unit cost and the unboxing score. That gives you a defensible comparison.

For content planners, film the alternatives. A board insert and a recycled film look different on camera. Test which one tells your brand story better. The tax saving is only useful if the unboxing still works.

Common questions

Methodology

Rates, thresholds, exemptions, return deadlines and evidence rules come from six GOV.UK pages published by HM Revenue and Customs, read on 28 October 2026. Earlier rates are shown with their effective dates from the same HMRC table. Worked examples are arithmetic on those rates and on illustrative quantities and unit prices, not survey data. This article is general guidance, not tax advice, so confirm your own position with HMRC or an adviser.

Cite this

Editorial Desk. (2026). Plastic Packaging Tax packaging materials: unboxing choices. Package Story. https://packagestory.co.uk/plastic-packaging-tax-unboxing-materials-uk