He also expressed concerns that composters do not fully understand the rates system, writes Emily Ross.
The Valuation Office Agency is clamping down on composters who are not paying rates for their businesses.
The Agency applies a rateable value to all non-domestic property in England and Wales.
These are published on rating lists. This information is then forwarded on to the local authority which calculates and send out the rating bill. The rating lists are in force for five years – the current list commenced 1 April 2005.
An awful lot of composters are not aware of how much money they owe. This is quite worrying.
Charlie Trousdell, TJ Composting
Speaking to letsrecycle.com, Charlie Trousdell, who is also managing director of Lewes-based TJ Composting, said: “The valuations office has made a statement to say we will find every composter who isn't paying rates and backdate their payments to 2005.
“An awful lot of composters are not aware of how much money they owe. This is quite worrying – particularly for small composters who aren't dealing with local authorities as those with contracts can increase their gate fee so the rates become a cost neutral, pointless tax.”
Traditionally composters have been exempt from business rates as they all produced compost to spread upon their own agricultural land.
Today more and more composters are working with local authorities and catering companies to provide food waste and green waste recycling services and these are “rateable activities”. However a lot of these composters are not paying rates.
A spokesman from the valuations office said “There is nothing new here – all non-domestic property is rateable (including composting sites) and always has been. As and when the VOA becomes aware of composting sites, these are added to the rating lists.”
Assessment
Rates are payable to local authorities and are dependent upon the size of land, facilities, and location and are based on a professional assessment of open market rental value of the land or facility.
Mr Trousdell said: “I'm not saying that we shouldn't pay rates – we need them to prevent cowboys but perhaps there is a better way to assess how much composters should pay. At the moment the existing disparity is unacceptable- and the charges are hard for the smaller operators who have large sites. Maybe it would be better to charge a rate per tonne. As the government is trying to expand the organics recycling perhaps environmental businesses should have a reduced level of rates.”
The vice chairman is also keen for the Association to begin a review he said: “What is clear is that we need to lobby the government on this issue as it is a mess.”
“The Association is trying to raise awareness about rates and move the debate forward in speaking to various government ministers.”
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