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‘Skip tax’ rules have not changed, says HMRC

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There has been no change of policy but there has been some confusion over the practical application of the landfill tax rules since new guidance was issued on 18 May, an HMRC spokesman told Tax Journal this afternoon. Waste industry representatives had lobbied MPs amid warnings of job losses and ‘fly-tipping chaos’.

As Tax Journal reported last week, Revenue & Customs Brief 15/12 provided additional guidance on the evidence needed to support application of the lower rate of landfill tax to certain wastes.

The guidance sparked a ‘wave of concern’, the Press Association reported today, after ‘some tips started levying tax on waste dumped from skips at £64 a tonne, rather than the £2.50 charge that was previously applied’.

The BBC news website quoted Labour's Rachel Reeves, Shadow Chief Secretary to the Treasury, as saying skip operators and the construction industry were facing ‘unnecessary worry and confusion’.

HMRC said it was preparing a further clarification for publication later today.

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