HMRC delays decision on lower rate of Landfill Tax for fines


A decision on reviewing what materials qualify for a lower rate of Landfill Tax has been delayed.

HMRC was due to publish its decision on 11 November, but has written to stakeholder to confirm a delay without specifying when it expects to reach its decision.


Operators of materials recycling facilities were dismayed when HMRC said in May 2012 that trommel fines that previously qualified for the lower rate of the tax should be subject to the standard rate of Landfill Tax that is currently £72 per tonne. This compares to the £2.50 lower rate for inert materials.

In the letter, HMRC wrote: “There has been a lot of interest in this consultation and we received 120 responses. In addition, on 5 November, HMRC and Treasury officials had a very productive meeting with the Environmental Services Association (ESA), the United Resource Operators Consortium (Uroc) and the Chartered Institution of Wastes Management (CIWM) to discuss their views on the draft guidance.

“HMRC will now consider the range of responses received on the draft guidance. As part of this, we will work with the ESA and Uroc to enable them to develop specific proposals to provide greater clarity for operatives throughout the waste industry on the evidential requirements for the lower rating.”

CIWM chief executive Steve Lee said: “The meeting last week was positive, but we would remind HMRC that protracted confusion over the right landfill tax rate relief for different materials is bad for the industry. It is important that businesses can demonstrate whether they are managing ‘active’ or ‘inactive’ waste, as this currently makes a £69.50 per tonne difference in landfill costs. CIWM will continue to push for a clear and early resolution to this issue.”