Extended Producer Responsibility (EPR) and Packaging Recovery Notes (PRN) Tax 2025

EPR and PRN tax

The UK government has brought in new rules about packaging waste. These changes affect how businesses deal with the packaging they use and throw away.

The government has created two new systems called:

  • Extended Producer Responsibility (EPR) – makes companies pay more towards recycling costs
  • Packaging Recovery Notes (PRN) – a tax that helps fund waste management programmes.

Before these changes, local councils and taxpayers covered most of these costs. Now, businesses that create packaging waste will contribute directly to cleaning it up.

Do these rules apply to your business?

Not every business needs to follow these new rules. The government has set specific limits to decide which companies must comply.

You need to follow the new rules if your business meets both of these conditions:

  • Your annual turnover is more than £2 million.
  • You handle more than 50 tonnes of packaging each year.

If your business handles more than 50 tonnes of packaging and has a turnover above £2 million, you’ll need to do two main things.

First, you must report how much packaging your business uses each year. This means keeping track of all the cardboard, plastic, glass, and metal packaging that comes through your business. The government wants detailed records of these amounts.

Second, you’ll need to pay money towards recycling costs. This payment helps fund the systems that collect, sort, and recycle packaging waste across the UK.

Good news for smaller businesses

If your business stays below either the 50 tonne limit or the £2 million turnover limit, you don’t need to worry about these new rules. We’ve decided to handle all the costs and paperwork for these smaller businesses ourselves.

This means you won’t face any new costs or need to fill out government forms. Your service will continue exactly as it has before. We believe smaller businesses shouldn’t be burdened with complex regulations that were designed for much larger companies.

Why did the government make these changes?

The UK produces millions of tonnes of packaging waste every year. Much of this waste ends up in landfills or needs expensive processing to recycle properly. Local councils have struggled to pay for all the collection and recycling services needed.

The government decided that businesses creating packaging waste should contribute more to solving this problem. This approach follows similar systems already working in other European countries.

The new rules also encourage businesses to think more carefully about their packaging choices. Companies might start using less packaging or switch to materials that are easier to recycle.

How we’re helping our customers

We understand that new government rules can feel overwhelming, especially when you’re trying to run a business. That’s why we’ve taken steps to make this transition as smooth as possible.

For our larger customers who meet the government thresholds, we’re providing guidance on reporting requirements and helping calculate the costs involved. We can also advise on ways to reduce packaging usage if that makes sense for your business.

For smaller businesses, we’re simply absorbing these costs ourselves. You won’t see any changes to your bills or service levels.

If you’re unsure whether your business meets the government thresholds, start by calculating your annual packaging usage and checking your turnover figures. Remember, you need to exceed both limits before the rules apply to you.

If you think your business might be affected, get in touch with us. We can help you understand exactly what the requirements mean for your specific situation and discuss the best way forward.

A message to our customers, partners and prospects

Since the start of the pandemic, Polythene UK have continued to ensure the safety of our staff, along with providing the best products and services, as we have done for the last 13 years.

We are fully operational. The safety of our staff, customers and wider public has always been our number one priority, and this continues to be the case by operating strictly under the governments guidelines.

Whilst we have a number of staff members working from home, to reduce the number of people within our office, you can still reach our team on 01993 220727*. Our warehouse is fully operational too, with strict social distancing measures in place.

There is no impact to our typical response and delivery times.

We would like to take this opportunity to thank you for your continued support and custom, we hope you are all well and safe.