On the 18th May 2012 the HM Revenues and Customs issued a briefing note outlining two changes to the enforcement of existing rules relating to Landfill Tax.
Firstly, it stated that fines generated from trommels and screens which have in the past been charged the lower landfill tax rate of £2.50 for inert material will now be charged the full rate of £64 a tonne for active material.
Secondly, waste or material used to cover waste in landfill cells before they are capped will also be taxed at the full rate of £64 a tonne.
While there are some regulations governing these materials which might mean some would still qualify as inert, the vast bulk of material, because the exact source and content might not be known or be suitable, will attract the £64 rate.
The full briefing from the HMRC can be found at:
The briefing note and the resulting classification have an immediate effect.
Consequently, this has not provided waste operators an implementation time frame to digest, consult and plan for any possible impact on operations and cost as a result of Government Policies.
As a result of this immediate impact, there will inevitably be a period of operational service disruption and upward price pressure within certain regions and "pockets" of the country as waste operators assess the impact on their business going forward.
Reconomy is working tirelessly with providers during this period to clarify their position and therefore offer customers the best possible service and reduce disruption to a minimum.
However, there will be instances out of our control, where this will not be possible and the full cost of the new landfill tax changes will unfortunately have to be passed on to our customers.
Whilst this is regrettable, we hope that you understand that the issues faced during this period cut across the whole industry and the overall repercussions are still being digested.
Due to the immediate effect of the changes, both existing orders and all new orders moving forward could now potentially result in increased charges due to such exceptional circumstances imposed by waste operators.
Reconomy will advise all customers of potential price increases at the "Point of Sale" and where possible will work together with customers to mitigate the potential increase in price where physically possible.
We will keep you fully up-to-date on developments as they happen via our website www.reconomy.com, and thank you in advance for your understanding during this uncertain period.
Should you have any questions or queries regarding any of the points above, please contact your account manager in the first instance who will be happy to offer any support required.