HMRC Brief on Landfill Tax creates uncertainty claims MPA

The UK Revenue & Customs Brief (HMRC) number 15/12 on Landfill Tax, which was  issued on 18 May, has created uncertainty for many operators involved in producing recycled aggregates or using inert materials for quarry restoration purposes, says the 2897 Mineral Products Association (MPA).

The organisation says unless it is modified it could threaten the sustainable recycling of land and waste, contrary to government’s own objectives.

The MPA recognises the need for the Brief, which clarifies how HMRC will classify certain waste materials in the future. However, the total lack of prior communication and the unannounced publication of the Brief, together with the immediate introduction of its changes and the very significant increases in tax rates that could result, have caused alarm amongst many operators.  There are fears that some aggregate recycling sites could no longer be financially viable and may be forced to close.

MPA has been in contact with 4358 DEFRA (Department for Environment, Food and Rural Affairs) and the 4366 Environment Agency (EA) to seek urgent meetings to resolve a number of apparent unforeseen and unintended consequences arising from the Brief that may have come about from misunderstandings about the use of different materials to beneficial effect in the restoration of land.  Discussions with 5865 Environmental Services Association (ESA) are also ongoing, to ensure that the accepted positive clarification for waste operations does not create unwanted damage to valuable recycling or quarry restoration activities by default.