Landfill Tax Ruling

Landfill Tax “Grace Period” In Chancellors Autumn Statement

Landfill Tax
Landfill Tax

Waste industry members have welcomed the government’s latest stance on landfill tax, announced in the Chancellor’s Autumn Statement yesterday (December 3).

Under new proposals, a 12-month ‘grace period’ raising the loss on ignition threshold from 10% to 15% has been confirmed by the Treasury – which will give operators more time to comply when the testing regime is launched in April

Several industry members including the Environmental Services Association (ESA) and the United Resources Operators Consortium (UROC) have also been involved in a government-industry working group on landfill tax to decide how the new LOI testing regime would be implemented.The 15% threshold is based on feedback received on a public consultation launched by Her Majesty’s Revenue & Customs (HMRC) earlier this year.

Commenting on the announcement, ESA was pleased that a ‘line in the sand’ had finally been drawn on the issue, but admitted it would have rather seen the 10% limit commence ‘straight away’.

Sam Corp, ESA’s head of regulations, said: “ESA is pleased that a line in the sand has finally been drawn and that all operators now have a definitive date to work to comply with the LOI testing requirement.

“The LOI requirement will mean that for the first time there will be an objective testing regime in place which will enable HMRC to crack down on misclassification of waste fines and provide a level playing field for all operators.

“Whilst ESA would have preferred the 10% limit to commence straight away, the twelve month transition from 15% down to 10% will at least give some companies with ‘borderline’ compliant fines, the opportunity to modify their processes to meet the new standard.”

He added: “It is important to remember that robust enforcement by HMRC will be required to ensure that the new system works and is not abused.”

UROC’s Response to Landfill Tax

“Whilst ESA would have preferred the 10% limit to commence straight away, the twelve month transition from 15% down to 10% will at least give some companies with ‘borderline’ compliant fines, the opportunity to modify their processes to meet the new standard.”

Meanwhile, UROC – which originally put forward the notion of a 15% grace period in its consultation response – welcomed the government’s decision to listen to its members.

A UROC spokesperson said: “UROC is delighted that ultimately the government has listened to our members and have indicated the 15% grace period will go ahead.

“The group will continue to work on these measures and we hope there will be some more indication that the government will guarantee consistency across LOI tests with a second sample taken if the first is challenged.”

The government-industry working group are due to convene again in the new year to ‘iron out’ legislation and adopt a standardised LOI test to avoid inconsistencies between waste load. In November, the group discussed an ‘optimum’ temperature of 430℃ at which to test waste.

Recycled from http://www.letsrecycle.com/news/latest-news/waste-industry-welcomes-landfill-tax-ruling/ 

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