The Allocation system for small producers
If your business has a turnover between £2m to £5m and handles more than 50 tonnes of packaging, you will be eligible to choose the allocation system as a method of submitting your data to Wastepack.
The allocation systems eliminates the need for companies spending time and resources compiling the necessary packaging data that is required to accurately submit an annual return declaration. Instead, a company's turnover headline figure is multiplied by a pre-determined number to give the size of the obligation and the packaging material is determined by the most common material handled by that company.
For example, a company with a turnover of £3.5m and who handles packaging mostly made out of cardboard, would calculate their packaging data as follows:-
3.5 x 29 = 101.5
Most common material = Cardboard
Packaging obligation = 101 tonnes of Cardboard.
This approach has been designed to simplify the data gathering process. Certain conditions apply; companies must be able to demonstrate their turnover through their statutory accounts and companies choosing the allocation system must agree to use it for a minimum of 3 years.
If your company falls between the £2m to £5m turnover thresholds and you would like to learn more about the allocation system, please contact us.