Packaging tax bosses have been accused of “heavy handed” tactics after warning more than 2,000 producers they could be billed 5% of their turnover unless they pay up within 15 days.
However, Defra has now been forced to write again to all of those contacted and to bring out new guidance, after admitting that nearly 1,400 of them were on track with payments.
It is the second time in a month that PackUK has become embroiled in a row over EPR collections. Last month it admitted hundreds of producers had accidently been billed multiple times.
Defra’s packaging body, which sent out the first invoices for the controversial new tax in October, contacted companies to chase down money for the first year of the scheme.
The letter to companies reads: “We have previously attempted to contact you but have not received payment for your waste disposal fees.
It adds: “A Variable Monetary Penalty for 5% of your UK turnover (2% for a group) will be considered against your company if payment is not made within 15 days of this letter.
“If you do not pay, PackUK will take legal action for recovery of the Notice of Liability and any Variable Monetary Penalty that’s been issued. If you can’t make payment via the methods and timings set out in the Notice of Liability, please raise a ‘payments’ support request.”
Defra has admitted that on Monday an automated email was sent to 2,078 producers, setting out that they had a payment overdue, which included the threat of the 5% UK turnover fine if payment was not received within 15 days.
It said the letter was sent to 691 producers which had not made any payments towards EPR and 1,387 producers who had made partial payment but not set up a direct debit or agreed a payment plan.
Defra said where producers had only paid their the first quarterly payment they were required to either set up a recurring direct debit or to agree a formal payment plan with PackUK, However, it admitted that the rules had not been clear and said it had now written to all producers involved to try to clarify the situation.
Defra said it had also issued explanatory communications to both compliance schemes and trade associations.
However, PackUK’s controversial approach has been met with fury from producers.
One company boss told The Grocer: “We were shocked to get this letter, we made our first quarterly payment in December with our next payment due in March, this is all in line with what is allowed and explained in the invoice itself.
”But for whatever reason they are demanding the balance ie Q2, Q3 and Q4 immediately. How are businesses supposed to operate like this?
“I have tried to contact PackUK but not been able to speak to anyone on the helpline today, because of the very long wait times.”
‘Urgent action’
The latest row comes after PackUK was forced to take “urgent action” last month after it emerged thousands of companies had been accidentally billed multiple times by mistake for their extended producer responsibility payments.
The Grocer revealed PackUK had written to companies to say it is was refunding the money, which it said had been taken from around 11% of obligated producers.
It is understood some producers have been charged as many as four times, with the body blaming technical issues which struck the direct debit collection system for the scheme.
Also in December, The Grocer reported disquiet from companies after it emerged they were being billed 4% on top of what they owed under EPR to cover other businesses that had not paid their fees.
EPR invoices landed with retailers and manufacturers for the first time in October. The so-called impairment charges added include more than £60m to allow PackUK bosses to cover non-payments.
No comments yet