A recent YouGov survey of more than 600 small and medium-sized firms found that only one in five respondents were even aware of the regulations, even though implementing the recycling and treatment processes will incur additional costs. Although the exact amount that will be levied on those that do not comply has yet to be decided, fines could add to the financial impact that the move is expected to have on smaller businesses.

"It is important for us to shout this warning from the rooftops," said the FPB's Chief Executive, David Roughley. "Especially as there is still so much uncertainty within the small business community as to what counts as ‘treatment'."

Regulation two of the Landfill Regulations (England and Wales) 2002 says that treatment has to constitute physical, thermal, chemical or biological processes in order to reduce the volume of waste or decrease its hazardous nature, facilitate its handling and enhance its recovery. For many owners of smaller businesses, what is expected of them is unclear and the Environment Agency's subsequent guide on pre-treatment, published in 2005, appears to have led to even more confusion.

The Regulations are part of the Government's drive to encourage recycling and reduce the amount of rubbish sent to landfill sites. They have already come into force in Scotland, and from 30 October 2007 will affect businesses in England and Wales.