30 October 2018 by Steve Eminton

Landfill tax rates confirmed for next two years

In the wake of the Chancellor’s Budget statement yesterday, HMRC has confirmed Landfill Tax rates for England for the next two years, subject to completion of parliamentary processes.

For the first time the tax will be above £90 when it is increased from the current £88.95 per tonne for standard rated material to £91.35 from 1 April 2019. Then, on 1 April 2020 it will jump by nearly £3 to £94.15 per tonne.

The increases are in line with the Retail Prices Index (RPI), rounded to the nearest 5 pence.

Lower rated materials will see a 10p per year increase, currently £2.80 per tonne, rising to £3.00 by 1 April 2020.

Landfill Tax
£ per tonne (England)
From 1 April 2020From 1 April 2019From 1 April 2018From 1 April 2017From 1 April 2016
Standard rate94.1591.3588.9586.1084.40
Lower rate3.002.902.802.702.65

 

Wales and Scotland

The Welsh Government has confirmed that its Landfill Disposal Tax rates will be the same as England for next year. However, confirmation of the Scottish rates will not happen until the Scottish Government’s budget is published on 12 December 2018 although the levels so far have been similar to England.

Recycling

Landfill tax will rise above £90 next April

Landfill Tax is charged on material disposed of at a landfill site or an unauthorised waste site. As such, said the Treasury, it encourages “efforts to minimise the amount of material produced and the use of non-landfill waste management options, which may include recycling, composting and recovery”.

And, the Treasury added that increasing Landfill Tax rates in line with RPI means that the Landfill Tax can continue to help the government meet its environmental objectives.

Landfill Tax was introduced on 1 October 1996 to encourage waste producers and the waste management industry to switch to more sustainable alternatives for disposing of material.

There is a lower rate of tax (which applies to less polluting qualifying materials covered by two Treasury Orders) and a standard rate (which applies to all other taxable material disposed of at authorised landfill sites).

Previously, the Landfill Tax applied across the UK but from 1 April 2015 it was devolved in Scotland and from 1 April 2018 in Wales.

Communities Fund

The Landfill Communities Fund, where the bulk of income derives from Landfill Tax monies is to be set at £32.9 million for 2019/20. And, HMRC said that “the percentage credit that landfill site operators may claim against their annual Landfill Tax liability for LCF contributions made to environmental bodies (EBs) will be maintained at 5.3% from 1 April 2019.”

The Entrust Environmental body levy for 2019/20 is set at 2.83%. This was published by ENTRUST on their website on Budget Day.

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