HMRC Delays Long-Awaited Landfill Tax Guidance

12-11-13(1)picHM Revenue and Customs (HMRC) has confirmed that the long-awaited guidance on the lower rate of landfill tax will not be published as originally announced.

The Guidance is being developed in response to the “trommel fines” issue, and was due to be published yesterday (11 Nov), however, CIWM received conformation that it is to be delayed.

HMRC received around 120 responses on the proposed new Guidance and met with CIWM, the Environmental Services Association and URoc last week to consider the responses.

As a result, a letter has been issued by HMRC confirming that the new guidance is not ready yet, that further work is needed, and that the existing guidance remains in place.

CIWM, Steve Lee – “It is important that businesses can demonstrate whether they are managing ‘active’ or ‘inactive’ waste, as this currently makes a £69.50/tonne difference in landfill costs. CIWM will continue to push for a clear and early resolution to this issue”

CIWM chief executive Steve Lee said: “The meeting last week was positive, but we would remind HMRC that protracted confusion over the right landfill tax rate for different materials is bad for this industry.

“It is important that businesses can demonstrate whether they are managing ‘active’ or ‘inactive’ waste, as this currently makes a £69.50/tonne difference in landfill costs. CIWM will continue to push for a clear and early resolution to this issue.”

The letter states that in the meantime existing Guidance still applies.

The HMRC Letter in full

We recently wrote acknowledging your response to the informal consultation on the above draft guidance. We advised that, owing to the number and nature of responses received, it was unlikely that we would be in position to publish the guidance by 11 November. I can now provide you with an update on this position.

There has been a lot of interest in this consultation and we received around 120 responses. In addition, on 5 November, HMRC and Treasury officials had a very productive meeting with the Environmental Services Association (ESA), the United Resource Operators Consortium (Uroc), and the Chartered Institute of Wastes Management (CIWM) to discuss their views on the draft guidance. 

HMRC will now consider the range of responses received on the draft guidance. As part of this, we will work with the ESA and Uroc to enable them to develop specific proposals to provide greater clarity for operatives throughout the waste industry on the evidential requirements for lower rating.

Therefore, the draft guidance circulated in September will not be published on 11 November as originally planned. In the meantime, the existing guidance applies. Details are available on our website at: http://www.hmrc.gov.uk/landfill-tax/index.htm 

Yours faithfully

Claire Williams

Senior Policy Advisor

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