As the first reporting deadline for the Extended Producer Responsibility (EPR) looms, business finance experts have shared key planning tips for SMEs.
The EPR policy makes businesses financially responsible for the recycling of their packaging.
While the UK’s largest businesses prepare for an October 1, 2025, deadline, the date serves as a crucial prompt for SMEs to begin preparing for their own costs and reporting obligations.
Although smaller businesses are not required to pay waste processing fees at this stage, they are still required to pay a £1,216 registration fee and submit their first annual packaging report by April 1, 2026, to ensure compliance.
The policy currently defines two tiers of business based on annual turnover and the volume of packaging handled:
- Large producer: Annual turnover of more than £2 million AND handles more than 50 tonnes of packaging per year.
- Small producer: Annual turnover between £1-2 million AND handles 25-50 tonnes of packaging per year.
Joe Phelan, money.co.uk business credit cards expert, comments:
“While the EPR scheme is an important step towards sustainability, the annual registration fee of £1,216 and the new reporting responsibilities are a significant new cost for small businesses to fit into their budgets.
“As the deadline for larger firms approaches, now is the ideal time for SMEs to get organised for their own deadline in April. Proactive planning will help ensure these new costs are managed smoothly within their financial forecasts.”
To help firms stay compliant and manage the new financial burden, Phelan provides four key tips:
1. Prepare your reporting data now
“Make sure you have organised data-collection processes in place as soon as possible. Get a head start by looking over the reporting templates on the government website so you know what to expect and have everything you need to hand when the time comes.”
2. Audit your packaging to save money
“Conducting a packaging audit helps with accurate reporting and allows you to plan for future cost savings. This is crucial because from 2027, the fees your business pays will be directly linked to how easy your packaging is to recycle. Choosing materials that are harder to recycle, like black plastic, will mean you pay a higher rate, so identifying these materials now can lead to significant savings later on.”
3. Consider a compliance scheme
“Businesses with enough budget could partner with a government-approved compliance scheme for support. They can handle tasks like registering with the environmental regulator and reporting your data, though you will still need to cover the fees yourself.”
4. Plan for unexpected costs
“If you don’t have enough saved for the registration fee, it’s worth exploring what responsible lending options are available to you as a short-term solution. A business credit card, for example, can provide financial flexibility to cover any unexpected costs or late fees if you experience a hiccup during your submission.”
Further guidance on the extended producer responsibility (EPR) can be found on the GOV.UK website.
