Packaging tax chiefs are under fire after it emerged thousands of companies have been accidentally billed multiple times for their extended producer responsibility payments.
The Grocer can reveal PackUK has now written to companies to say it is taking “urgent action” to refund 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.
However, the blunder has been met with fury from producers, who yesterday slammed PackUK after The Grocer revealed it was charging an extra £60m on top of owed invoices to cover for companies who have not paid up.
In a letter to trade association PackUK said: “Urgent action is being taken to resolve this issue but we sincerely apologise for any inconvenience this causes.
“We have written to all affected companies and will be conducting follow-up communications throughout the day.
“We are working around the clock to ensure this issue is resolved with the utmost priority and will continue to support you and your members until the matter is resolved.”
The body has meanwhile urged any companies that have been plunged into cashflow problems by the move to dispute the payments with their banks and take action, including taking “screen grabs” of their bills to keep as evidence.
“Dispute your transaction - contact your bank today if you haven’t already done so and ask them to cancel the additional direct debit transactions under the Direct Debit Guarantee Scheme,” it wrote to companies.
“Keep any evidence of your bank’s response – for example, screen grab of an online chat or any emails you receive.”
However, companies were left fuming amid ongoing anger over the impact of the charges.
“This is absolutely scandalous. Direct debits have been taken twice from obligated producers,” said one source. “As if this tax wasn’t burdensome enough, they seem to be doing their level best to put them out of business.”
Another source added: “This is a particular issue for smaller businesses who have been billed twice.”
Earlier this week, The Grocer revealed companies were being billed 4% on top of what they owe to cover other businesses that haven’t 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.
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