News
The Plastic Packaging Tax (PPT) was introduced on 1 April 2022, with the intention of encouraging businesses to use more recycled plastic products. In April 2023 the tax per tonne was increased from £200, to £210.82.
For businesses who have manufactured or imported plastic packaging components which contain less than 30% recycled plastic, or expect to import or manufacture over 10 tonnes, this could have a large effect on cashflow. The tax has also seen manufacturers need to pivot their supply chains and production – in a difficult economic environment this can also have detrimental consequences.
The Leonard Curtis specialist debt team have recently agreed a Time to Pay (TTP) for £767,000 of HMRC arrears for a £19.5m business that operates as a manufacturer of plastic packing goods.
The current cost of living crisis had affected the company as it has caused customers to reduce their order sizes to meet their own reduced demand and led to a decrease in the company’s cashflow.
In addition, Government legislation brought forward the date when retailers could switch back to non-recyclable film by three months meaning the company’s stock had to be sold at a loss. This led to a liability of £175k for 'Plastic Tax'.
As a result of this, the amount available to borrow had been significantly reduced due to slower invoice volumes and loss on recyclable stock.
Leonard Curtis’ team, led by Awaes Ali, secured a ten-month TTP arrangement allowing the business time to recalibrate.
Further information on the Plastic Tax can be found here.
For any advice on managing large debts, get in touch with the team on 0161 835 1900 or debt.advisory@leonardcurtis.co.uk.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec ultricies consequat.
Spring Statement 2025
Lifecycle
Time to act quickly on a missed tax deadline
Restructuring and Insolvency
Leonard Curtis secures funding package for medical supplies provider
Funding
Personal insolvencies jumped by 14% annually in 2024 across England and Wales
Restructuring and Insolvency
Commercial finance expert appointment supports Leonard Curtis funding team growth
Funding
Leonard Curtis Legal supports shareholders of Impulse Embedded Limited with successful sale
Legal
Leonard Curtis Legal has advised the shareholders of Romix Foods Ltd on successful sale
Legal
100 Time to Pays agreed so far in 2024 ensuring business survival
Funding
Podcast: TRI and Offshore Jurisdictions with Matthew Wright and Nexia
Restructuring and Insolvency
£700,000 commercial mortgage secured for Midlands business
Funding
The future of EOTs
Legal
My Leonard Curtis journey so far with Becky Owen, Head of Commercial Finance
Funding
Copyright © 2022 Leonard Curtis
Copyright © 2022 Leonard Curtis
Copyright © 2025 Leonard Curtis
By using this website, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our privacy policy for more information.