HMRC has brought waste materials used at the top of landfill cells as well as the bottom within the scope of landfill tax.
HMRC have rewritten the notice owing to changes in the law, most notably relating to ending the exemption for waste arising from the reclamation of contaminated
Let’s Recycle report that…
In a brief published on May 18th 2013, HMRC said that tax should be paid on material used to protect or ‘provide a suitable stable substrate’ for the overlying layers at the top of a landfill cell. Known as the ‘top fluff layer’, this is around a metre of material underneath the clay cap in each cell and in the past has been regarded as an engineering material and therefore not taxable.
In addition, fines from recycling processes, grit and screenings will no longer be eligible for the lower £2.50 rate of landfill tax applied to inert material, and must be charged the full rate of £64 a tonne.
The changes to the landfill tax rules follow a landmark case in 2008 involving HMRC v Waste Recycling Group (WRG). In the case, the court ruled that inert material brought onto site by WRG and used for temporary structures, such as daily landfill cover and site engineering purposes, was not liable for taxation as it had not been disposed of. HMRC was ordered to pay back the tax to WRG, which paved the way for £300 million of further repayments (click here for full WRG story).