However, landfill operators, through their tradebody, the Environmental Services Association,have welcomed the HMRC clarification of rules covering the landfill tax relating to materials from waste transfer stations and skip hire businesses which was issued just before the Diamond Jubilee weekend.
The ESA represents companies operating landfill sites including Biffa, Grundon, SITA UK, Veolia and Viridor,andissued a supportive statement for HMRCs latest document (published on June 1 see letsrecycle.com story).
Welcome
ESA director general Barry Dennis said: We welcome HMRCs further clarification of the rules which apply to landfill tax. In particular we welcome HMRCs confirmation that residual materials from waste transfer stations will be liable to the lower rate of tax where they can be shown to be genuinely inert material, while materials which cannot be shown to be inert will be subject to the standard rate.
Mr Dennis continued: As ESA has said throughout, it is right that the position is clarified by HMRC to ensure a level playing field, and so that the correct rate of landfill tax is applied to all operators.
Feeling
Commenting immediately following the clarification in the Bulletin Brief 18/12 issued by HMRC, Julian Bowden-Williams, tax partner with Ernst & Young and former head of tax at Biffa said he was pleased that HMRC appear to have taken on board the strength of feeling that has been generated over the past two weeks throughout the waste industry as a result of the previous announcement (Bulletin Brief 15/12), particularly in the area of waste transfer / trommel ‘fines’.
Mr Bowden-Williams said: “Whilst HMRC have suggested that the waste industry’s belief that an increase from 2.50 per tonne to 64 per tonne due on certain waste streams was down to a misunderstanding, it would be surprising if the whole industry really misinterpreted the previous HMRC announcement.
The fact that HMRC have now issued a clarification (and said that there has been in their view no change in the rules for the tax treatment of such materials since 2009) is welcome, in that there is clarity on what has or rather what has not changed.
He added: “The challenge for the industry now will be to work with the relevant authorities and their advisors to obtain clarity as to what can still theoretically and, importantly, operationally fall within the Landfill Tax (Qualifying Materials) Order 2011 and thus still attract the lower rate of tax.This latest clarification may not therefore be the full response that the entire waste industry will welcome.”
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