Landfill Tax: Difference between revisions
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== Overview == | == Overview == | ||
The [[Landfill Tax]] in the UK is applied to wastes that go to [[Landfill]], which increases the overall cost of [[Landfill]]. The tax is applied per tonne of waste, applied in addition to the [[Gate Fee|gate fee]] charged by the landfill operator, who is responsible for charging and collecting the tax from the disposer of the waste, and accounting for the tax and paying it to [[HMRC]]. In | The [[Landfill Tax]] in the UK is applied to wastes that go to [[Landfill]], which increases the overall cost of [[Landfill]]. The tax is applied per tonne of waste, applied in addition to the [[Gate Fee|gate fee]] charged by the landfill operator, who is responsible for charging and collecting the tax from the disposer of the waste, and accounting for the tax and paying it to [[HMRC]]. In 2023/24 the amount of Landfill Tax collected was £489 million which is 22% lower than the previous financial year <ref name='hmrcstat'>[https://www.gov.uk/government/statistics/environmental-taxes-bulletin/environmental-taxes-bulletin-commentary-june-2021#landfill-tax-receipts-and-declarations HMRC National Statistical Environmental Bulletin commentary (June 2024)]</ref> and VAT is charged on the [[Landfill]] [[Gate Fee|gate fee]] and the Landfill Tax. | ||
'''Extract from Environmental Bulletin (Figure 4: Total Landfill Tax Receipts by Financial Year, in £million)''' | '''Extract from Environmental Bulletin (Figure 4: Total Landfill Tax Receipts by Financial Year, in £million)''' | ||
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== Rates (Active/Inactive) == | == Rates (Active/Inactive) == | ||
The Landfill Tax started out at modest rates and annual increases, and was then increased by £8 per tonne from 2006 to 2014 before moving closer to inflationary increases thereafter, with the rate from 1st April 2019 announced at £91.35 for active and £2.90 for inactive waste and from 1st April 2020 £94.15 for active and £3.00 for inactive waste. | The Landfill Tax started out at modest rates and annual increases, and was then increased by £8 per tonne from 2006 to 2014 before moving closer to inflationary increases thereafter, with the rate from 1st April 2019 announced at £91.35 for active and £2.90 for inactive waste and from 1st April 2020 £94.15 for active and £3.00 for inactive waste. Increases in April 2025 are for a step change in tax per the table below. | ||
From 2015 the Scottish Landfill Tax<ref>[https://revenue.scot/scottish-landfill-tax Scottish Landfill Tax]</ref> came into force (at the same rates England and set for the same rate in 2019/20) and from April 2018 Wales <ref>[http://www.legislation.gov.uk/wsi/2018/131/made Landfill Disposals Tax (Wales)]</ref> set its own landfill tax known as the Landfill Disposal Tax (with a slightly higher rate for active waste 2019/20 of £91.70). For 2020/21 Wales, Scotland, Northern Ireland and England will be aligned. <ref>[https://www.letsrecycle.com/news/latest-news/uk-landfill-tax-rates-similar/ Letsrecycle Article]</ref><ref>[https://www.gov.uk/government/publications/excise-notice-lft1-a-general-guide-to-landfill-tax/excise-notice-lft1-a-general-guide-to-landfill-tax#two-rates-of-tax Excise Note LFT1 updated 9 April 2020]</ref> | From 2015 the Scottish Landfill Tax<ref>[https://revenue.scot/scottish-landfill-tax Scottish Landfill Tax]</ref> came into force (at the same rates England and set for the same rate in 2019/20) and from April 2018 Wales <ref>[http://www.legislation.gov.uk/wsi/2018/131/made Landfill Disposals Tax (Wales)]</ref> set its own landfill tax known as the Landfill Disposal Tax (with a slightly higher rate for active waste 2019/20 of £91.70). For 2020/21 Wales, Scotland, Northern Ireland and England will be aligned. <ref>[https://www.letsrecycle.com/news/latest-news/uk-landfill-tax-rates-similar/ Letsrecycle Article]</ref><ref>[https://www.gov.uk/government/publications/excise-notice-lft1-a-general-guide-to-landfill-tax/excise-notice-lft1-a-general-guide-to-landfill-tax#two-rates-of-tax Excise Note LFT1 updated 9 April 2020]</ref> | ||
To put the rates into context the landfill [[Gate Fee|gate fee]]s in 2018 were stated as £14.00 to £28.00 <ref>Letsrecycle.com</ref> with the tax representing therefore up to 5 times the [[Gate Fee|gate fee]]. | To put the rates into context the landfill [[Gate Fee|gate fee]]s in 2018 were stated as £14.00 to £28.00 <ref>Letsrecycle.com</ref> with the tax representing therefore up to 5 times the [[Gate Fee|gate fee]]. | ||
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== Landfill Tax Credit Scheme == | == Landfill Tax Credit Scheme == | ||
Landfill operators are able to make payments to organisations that qualify under the Landfill Communities Fund under the Landfill Tax Credit Scheme, rebating a proportion of the landfill tax collected for qualifying community or environmental projects in the vicinity of a landfill sites and is regulated by ENTRUST, with £37.8 million<ref name='hmrcstat' /> rebated in the 2017/18 tax year. | Landfill operators are able to make payments to organisations that qualify under the Landfill Communities Fund under the Landfill Tax Credit Scheme, rebating a proportion of the landfill tax collected for qualifying community or environmental projects in the vicinity of a landfill sites and is regulated by ENTRUST, with £37.8 million<ref name='hmrcstat' /> rebated in the 2017/18 tax year. No figures were stated in the June 2024 release. | ||
== References == | == References == | ||
<references /> | <references /> | ||