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Landfill Tax 2014

The standard rate of Landfill tax will be raised to £80 per tonne on 1st April 2014 for non-hazardous waste.  The extract below was posted by McCarthy Marland to the Bristol Post in March 2014

Landfill Tax 2014 | News | McCarthy Marland

"The construction and waste management sectors are closely linked when it comes to cost control and this will become even more apparent on 1st April when HMRC raises the standard rate of landfill tax again by a further £8 per tonne to £80 per tonne.

Landfill tax was introduced in 1996 by the then environment minister at a rate of £8 per tonne.  It was introduced with the purpose of encouraging waste recycling and reducing the amount of waste sent to landfill.  It has been an effective tool in this regard and has consequently been steadily increased over time owing to the landfill tax escalator.  Today landfill tax stands at £72 per tonne for standard rated active waste and £2.50 per tonne for inactive lower rated waste.

With the next increase looming on 1st April construction companies must make sure they use waste management contractors who are actively investing in waste recycling technology.  Those that do invest will be able to offer long term pricing stability to their customers and those that do not will continually have to pass on full landfill tax increases.

The Chancellor George Osborne has not yet provided clarity over the landfill tax escalator beyond 1st April 2014 other than announcing that “a floor will be put under the 2014 standard rate of £80 per tonne until 2020.”  This effectively means there is only one way for this tax to keep going and many expect further increases towards £100 per tonne as currently seen in several European countries.

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