Last week, HMRC provided further guidance to try to address the uncertainty following its original brief on the rate of landfill tax for inert waste published on 18th May.

Since this date, the waste industry has been in flux due to the uncertainty of which wastes are subject to the lower rate of landfill tax of £2.50 as opposed to the standard rate of £64.00 per tonne.

Landfill owners, recycling companies and skip hire operators were forced to increase their prices overnight as the wording of the HMRC brief suggested inert waste would from immediate effect be no longer eligible for the lower rate of tax. Although HMRC has stated that this was not its intended meaning, despite a second brief to clarify its intended meaning last month, the waste industry is still unsure as to what is subject to the lower rate of tax and how to evidence this.

The latest guidance has been developed in consultation with the waste industry to ensure the lower rate of tax is being correctly applied. The HMRC is expected to provide further guidance with a view to returning stability to the waste industry and its prices by the end of the summer.

View the interim advice.

Read more on Lets Recycle and MRW.

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