Business News

UK businesses have been charged twice under the input tax scheme after the Paphak blunder

Nearly 500 companies have been wrongly charged multiple times under the government’s new compliance monitoring system, after a “technical problem” caused double withdrawals during the busiest trading period of the year.

Paphak, the body created to manage the additional cost of capacity (EPR), confirmed that 484 producers, about 11 percent of the registered, see the payment of waste – waste – repeatedly observed without warning without warning. The industry estimates the error has resulted in hundreds of thousands of pounds being wrongly removed from business accounts, with some hitting seven-figure figures.

Benchmark Drinks, which produces celebrity wines for Kylie Minogue, Graham Norton and Sarah Jessica Parker, was among those affected. CEO Paul Schaafsma said his finance team alerted him after three identical payments totaling $700,000 disappeared from the company’s bank account.

“We’re lucky that we have good money,” Schaafsma said. “But for businesses that are struggling or tight with money at this time of year, taking the EPPR three times is simply not a crime. There will be employees and someone else who needs it three times.”

Packak emailed the businesses on Wednesday saying “Urgent Action” was being taken and promising a refund “close to playing on Friday December 5”. But as Schaafsma and his team put it at their Christmas party that night, there was no return.

The blunder is the latest setback to the much-criticized EPR scheme, which many food and drink companies are subject to a “favorable tax”. Under EPR, responsibility for the full cost of collecting, sorting and recycling Shiffs from local councils to the companies that produce them, a change aimed at better energy and better waste reduction and better pollution reduction.

But manufacturers say the system is more complicated and more expensive than the unspecified servers suggested, with uncertain reporting requirements, uncertain concerns and concerns that related lawsuits will be passed on to consumers.

“The government talks about keeping inflation down,” but the irony is that the government causes more inflation than anyone else with these personal taxes. “

A spokesman for the Ministry of Environment, Food & Rural Affairs said the fault appeared to be from “an external service provider”, adding: “We are aware of the disruption caused and all businesses affected.”


Jamie Young

Jamie is a senior business reporter, bringing ten years of experience to the UK SME Business Report. Jamie holds a degree in business administration and regularly participates in industry conferences and workshops. When not reporting on the latest business developments, Jamie enjoys mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.



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