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New legislation passed is set to see skip hire prices soar – Landfill ruling sends shock waves through industry

The UK demolition and recycling sectors are reeling from the news that waste that could previously be dumped for around £2.50 will now be charged at the full £64 per tonne rate.

On Friday (May 18) Her Majesty’s Revenue and Customs (HMRC) announced two changes to its landfill tax rules. Firstly, it said that fines from trommels and screens which have in the past been charged the lower landfill tax rate of £2.50 for inert material will now be charged the full rate of £64 a tonne for active material. Secondly, waste or material used to cover waste in landfill cells before they are capped will also be taxed at the full rate.

Sean Heron, whose Dig A Crusher company markets the Max X Tract Density Separator that is designed to remove trommel waste fines, says the news has come as a bolt out of the blue. “Under the letter of the law, fines should always have been categorised like this but it was a loophole that was never regulated,” he says. “But this latest ruling marks the biggest shake-up of the Landfill Tax system for 10 years and will have a major impact upon the UK demolition industry.”

To read more, click here or to read the HMRC statement, click here.

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