HM Revenue and Customs sought to “clarify” the application of landfill tax rates through Revenue and Customs Brief 15/12 issued on 18th May.  This caused massive and immediate rises in skip hire charges and widespread chaos across the construction industry.  Following intense lobbying by the FMB and the waste industry HMRC has issued two further guidance documents.

The latest, 'Landfill Tax, interim advice on lower rating' states that inert waste listed in the Schedule to the Landfill Tax (Qualifying Material) Order 2011, should be charged at the lower landfill tax rate of £2.50/tonne, see www.hmrc.gov.uk/landfill-tax/lft-interim-guidance.pdf

The lower rate also applies where the consignment consists of a number of different qualifying materials.

The FMB is advising its members to challenge their skip hire firms to justify any cost increases and to actively seek alternative providers. please see the landfill tax update from FMB tax advisor Liz Bridge.