Changes introduced by the Finance Act 2018 extended the scope of landfill tax with effect from 1 April 2018.
The changes are far-reaching and potentially bring any client within the scope of landfill tax if they allow their waste to be disposed of at an unauthorised site, even if they themselves do not dispose of the waste. Hauliers, brokers and landowners are also brought within the scope of the tax if they allow disposal of their waste at an unauthorised site.
The new legislation extends the scope of landfill tax to sites made without an environmental permit. Where waste is disposed of at a site without a permit, anyone who ‘knowingly facilities’ the disposal may be liable for the tax. This means that all parties involved could be liable for penalties for non-compliance, or even face criminal prosecution. However, the legislation includes safeguards to protect those in the waste supply chain who, despite carrying out all reasonable due diligence, were unknowingly involved in the illegal dumping of waste, so that they will not suffer tax or penalties.
Where waste is disposed of at a site with a permit, it will be taxable unless the waste is of a type that is specifically exempt.
It is important that you are aware of the extension in scope and that you have sufficient checks in place to ensure that you do not unknowingly become involved in the illegal disposal of waste. The Government have confirmed that as long as the Defra Duty of Care requirements have been met, innocent parties will not be penalised. Therefore, clients should ensure that they are both familiar with, and comply with, the Defra Waste Duty of Care Code of Practice.
Written by the Tax Advice Network