Is your construction waste “qualifying material”?

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.

Note 1: Budget 2014 announced an increase in the standard and lower rates of Landfill Tax in line with inflation (based on Retail Prices Index (RPI)) rounded to the nearest 5 pence, for disposals of waste made, or treated as made, to landfill on or after 1 April 2015. There will be a floor under the standard rate, so that the rate will not fall below £80 per tonne from 6 April 2014 to 5 April 2020.

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: