From 1 April 2027, changes to the UK’s Plastic Packaging Tax will affect both the tax rate and how recycled plastic content qualifies. For businesses purchasing flexible packaging, now is a good time to review material specifications and supporting supplier documentation.

The government has announced that Plastic Packaging Tax will increase from £228.82 to £236.56 per tonne from 1 April 2027. This represents an increase of £7.74 per tonne, approximately 3.4 per cent. The tax applies to chargeable plastic packaging containing less than 30 per cent qualifying recycled plastic.

Pre-consumer recycled plastic will no longer qualify

From the same date, pre-consumer plastic waste will no longer count towards recycled content for Plastic Packaging Tax purposes.

This means packaging currently meeting the 30 per cent threshold through qualifying pre-consumer recycled material may become taxable unless sufficient eligible recycled content is used instead. Businesses should check the source of their recycled content, rather than relying solely on the percentage stated on a specification.

A new approach for chemically recycled plastic

A mass balance approach will allow chemically recycled plastic to be attributed to packaging for tax purposes, subject to certification and evidence requirements.

In simple terms, mass balance tracks and allocates recycled inputs through production processes where recycled and virgin materials are mixed. It provides an accounting method for attributed recycled content.

From April 2027, businesses wishing to count chemically recycled plastic in their Plastic Packaging Tax returns must use this approach. Without it, HMRC will treat that chemically recycled plastic as virgin material for the tax. Relevant supply-chain certification, attribution declarations and supporting records will be required.

What should packaging buyers do now?

To prepare for the changes, we recommend:

• Reviewing specifications: Identify packaging that currently relies on pre-consumer recycled content.

• Checking supplier evidence: Confirm the source and amount of recycled material supporting any tax exemption.

• Planning costs: Allow for the higher rate and any packaging that may become taxable.

• Discussing alternatives early: Review suitable materials alongside sealing, barrier, clarity and processing requirements.

Any proposed material change should be assessed against the demands of the finished application before approval.

How Multiplastics can help

At Multiplastics, we work with customers and supply partners to review flexible packaging materials against practical performance requirements.

If you are reviewing your packaging ahead of April 2027, speak to our team about your current specifications and available material options.

Call 01606 330011 or contact us through our website to discuss your requirements.

Information checked on 4 November 2026. HMRC expects to publish further detailed mass balance guidance in early 2027.

If you have any questions or would like to learn more about the range of plastics and materials Multiplastics can offer please don’t hesitate to contact us. Our team of experts is here to assist you in finding the perfect solution. Contact Multiplastics on: 01606 330011

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