New Waste Management Regime
UK Government proposals from April 2018: HMRC will extend its application of Landfill Tax to the disposal of waste at sites that are not registered Landfill Sites
UK Government proposals from April 2018: HMRC will extend its application of Landfill Tax to the disposal of waste at sites that are not registered Landfill Sites. On the face of it, this should have no implications for you as a builder or developer – but this will depend heavily on how well you manage materials and soils on site, otherwise you may well be wrong.
This change in Legislation will be HMRC’s tightening grip on illegal waste disposal & fly tipping BUT will also apply to what is seen as inappropriate use or in many cases abuse of the CLAiRE Definition of Waste Code of Practice. This is used on projects where excavated materials are reprocessed, reused or imported on a development site and not treated as waste under the Code.
Requirements that are to be strictly implemented include the review and approval of site Material Management Plans and soils reuse under a Code of Practice submission by a Qualified Person to the Environment Agency. The MMP must be submitted to the EA and approved by them prior to the works beginning, if not, any materials re-used on site will be defined as waste and liable for Tax. HMRC will be enforcing this - it could also mean a fine equivalent to 100% of the Landfill Tax – so 200% of the tax rate. HMRC have estimated that their extra cost for enforcement officers will be £600,000 over the coming year.
As an example, lets take a site reusing a small amount of material, say 1000 tonnes of materials in a 600mm capping layer in 15 gardens. Without using an approved MMP under the Code this would now result in a Tax liability of £ 82,000 and a possible fine of up to £82,000. That could be over £10,000 per house!
The key to compliance is up-front planning, managing the MMP process and registering the site with the EA. Alongside this process, we also have EA registered Qualified People in-house who can assist in signing off this process and making sure the validation sign off is on place for you.