TechnologyAccounting SoftwareWEEE directive to hit business in the pocket

WEEE directive to hit business in the pocket

The delayed implementation of the Waste Electrical and Electronic Equipment directive is not an excuse for UK businesses to ease back on pricing and recycling arrangements

Guy Withey, business recovery manager at Baker Tilly, has called upon
practices to make sure that clients affected by the legislation are warned to
price the potential costs of the directive into their cost structures, or face
‘significant financial consequences’.

‘Accountants should find out if their clients are thinking about the
directive, in terms of building it into their pricing,’ Withey added.

Companies involved in the manufacture, sale, distribution and treatment of
electrical and electronic equipment are directly affected.

The directive, which will make businesses responsible for financing the
collection, treatment and disposal of waste electrical or electronic equipment
from private households or other users, will now come into effect for products
placed on the market after January 2006, moving back from the original start
date of August 2005.
Finance directors are expected to be heavily involved in managing the potential
costs of the directive.

The government has estimated these costs at between £200m to £450m per annum
in the UK.

‘It is important to determine pricing policies and establish optimum logistic
and recycling arrangements. It is also worth considering a WEEE compliance
scheme to manage recycling contracts, data collection and reporting to the
appropriate agency, thus sharing additional costs,’ said Withey.

The producers of electrical and electronic equipment will have to contribute
to costs regarding equipment collection in proportion to their respective share
of the market by type of equipment.

Related Articles

5 key tech innovations helping accountants transform their businesses

Accounting Software 5 key tech innovations helping accountants transform their businesses

2w Heather Darnell, Founder of Ask the BOSS
Finance and the tech foundation: what’s needed to deliver impactful business insights?

Accounting Software Finance and the tech foundation: what’s needed to deliver impactful business insights?

3m Workday | Sponsored
Best accounting software for businesses in the UK

Accounting Software Best accounting software for businesses in the UK

3m Accountancy Age, Reporters
Making sense of enterprise tech concepts for finance teams

Accounting Software Making sense of enterprise tech concepts for finance teams

4m Workday | Sponsored
Open Banking: what you need to know

Accounting Software Open Banking: what you need to know

4m Edward Berks, Xero
Accountancy in the digital age: Flexibility, agility, efficiency

Accounting Software Accountancy in the digital age: Flexibility, agility, efficiency

6m Pegasus Software | Sponsored
Sage purchases Intacct in its largest ever acquisition

Accounting Software Sage purchases Intacct in its largest ever acquisition

10m Alia Shoaib, Reporter
5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

10m Alia Shoaib, Reporter