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Landfill Tax Responsibilities Clarified by HMRC

HMRC has issued clarification on the landfill tax changes introduced in April 2018, with further explanation on who is responsible for the tax on disposals at unauthorised sites.

From 1 April 2018, landfill tax rates increased across the UK from £88.95 for standard rate material and £2.80 per tonne for lower rate material, as well as being extended to include disposals at unauthorised waste sites in England and Northern Ireland. 

The guidance clarifies the responsibility for landfill tax at unauthorised waste sites, advising that anyone who knowingly causes or permits the disposal at an unauthorised site may also be liable to pay the tax due. This means that when a taxable disposal at an unauthorised site has been identified, brokers, waste producers and landowners could be liable for the tax if they cannot demonstrate that they have taken the necessary reasonable steps under the Environmental Protection Act 1990 to ensure that waste is disposed of correctly. 

HMRC states that good business practice and record keeping will help safeguard against getting involved with disposals at unauthorised waste sites, recommending the following steps:

check that the next waste holder is authorised to take the waste;

ask the next waste holder where they’re going to take the waste and try and get proof;

give an accurate description of the material when it’s transferred to another person ie correct EWC code;

as a company director or partner, make sure you are directly involved with decisions made regarding the disposals of material by that business;

as a landowner, make sure that any lease or rental agreements state what the premises or land may or may not be used for;

as a corporate body, include procedures within your company’s risk assessment to prevent Landfill Tax evasion through your business.

If you have large amounts of waste that you want to divert from landfill, we can provide a sustainable and ethical waste to fuel solution that will also reduce your disposal costs. We are a leading supplier of feedstock to energy from waste plants, helping to divert commercial, industrial, construction and demolition waste from landfill and converting it into useable fuel sources. Contact our team on 0845 129 7177 to find out how we can help.

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