Since 1st April 2016 in England, the cost difference of not maximising construction waste that qualifies for the Lower Rate of Tax is £81.75 per tonne.The problem is that many people in the Industry do not realise that the Waste Classification for disposal purposes has not been aligned with our tax system.
Disposing of construction waste is an ever increasingly expensive business. When the Landfill Tax was first introduced on 1st October 1996 two rates were announced, a Standard Rate of £7 per tonne and a Lower Rate of £2 per tonne. Since that time the difference between the two rates has substantially increased and continues to do so with the difference between the two rates currently standing at £81.75 per tonne, an increase of £4.25 in the last two years alone.
So when there is no alternative to landfilling construction waste, make sure you take advantage of HMRC’s latest guidance on Qualifying Material, which can be found at: https://www.gov.uk/government/publications/excise-notice-lft1-a-general-guide-to-landfill-tax/excise-notice-lft1-a-general-guide-to-landfill-tax