Making Tax Digital is for all VAT-registered businesses
Since April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) have needed to keep VAT records digitally and send returns using Making Tax Digital (MTD) compatible software.
From April 2022, these requirements will apply to all VAT-registered businesses, including those with a taxable turnover below the VAT threshold. Find out more in HMRC's live webinar during which you can ask questions using the on-screen text box. The next one takes place today at 11.45 am. It gives an overview of Making Tax Digital, including digital record keeping, compatible software, submitting VAT returns directly from the business and how to sign up.
If you can't make this, there’s also this short video on HMRC’s YouTube channel: 'How do I use payroll software to send reports to HMRC?'.
Plastic Packaging Tax
The new Plastic Packaging Tax (PPT) came into force on 1 April 2022. If you manufacture or import plastic packaging you must check if you are liable for PPT. You have 30 days to register for the tax from the date you become liable.
The following provides you with all the latest information and useful links to support you with PPT.
Useful information for April:
• nobody will need to file a PPT return or pay the tax before July 2022 at the earliest, however you may need to register before this point
• PPT has a 10-tonne registration threshold and there are two tests to check if you need to register. You must register for PPT on GOV.UK if you have manufactured or imported 10 or more tonnes of plastic packaging since 1 April 2022, or if you expect to manufacture or import 10 or more tonnes in the next 30 days. Guidance here gives further information on what plastic packaging you must include against the 10-tonne threshold
• worked examples of passing both threshold tests are on GOV.UK at Examples of tests and calculations for Plastic Packaging Tax
• plastic packaging containing less than 30% recycled plastic is taxed at £200 per tonne. If you are over the registration threshold and already include 30% or more recycled plastic material in your plastic packaging, you still need to register but will not pay any tax
• once you become liable for PPT, you will need to keep accounts and records to use as evidence when you complete your quarterly tax returns for PPT
Important: reminder of importer responsibility
Businesses who import plastic packaging need to check who is responsible for complying with and paying PPT. This is unlikely to be the suppliers. For example, a UK based retailer imports goods from a German food manufacturer. The retailer is the consignee and in control of the import, so they are the business who will need to register for the tax where they pass the 10-tonne registration threshold.
If you import finished plastic packaging components using incoterms, you will need to agree with the other business about who is responsible for including the details on their Plastic Packaging Tax return and paying the tax.
PPT webinars: April sessions - HMRC are hosting a further round of PPT webinars next week. These cover the same content as previous webinars but provide the opportunity to put your questions directly to HMRC.
Introduction to Plastic Packaging Tax
Monday 25 April – 3.45pm to 4.45pm
Plastic Packaging Tax – admin and technical aspects
Wednesday 27 April – 1.45pm to 2.45pm
You can sign up to the April webinar sessions now or watch recordings of previous sessions via GOV.UK. Webinar recordings include timestamps so you can go straight to your area of interest.