On the 18th May 2012 HMRC issued new guidance on charges for landfill. The impact of this change is potentially very great for landscapers (and builders) and yet there seems to be little coverage of this change. The new guidance has been portrayed as a clarification of technical points which may be why it got so little attention but the impact was dramatic.
On the morning of 19th I rang my usual skip company to book a skip for a job next week. For central London we would usually pay around £170 + VAT, but I was told that their new charge was £100 haulage plus £140 per ton (+ VAT). As the job involves excavating a lot of soil this could mean that an 8 yard skip would cost over £1200. Given that the job was costed on the one-off price basis this means I have had to go back to the customer to discuss the project (it could cost an additional £4-5000).
A number of skip companies stopped taking bookings on the 19th and some weren’t answering the phone. Some were still offering skips at the old price because they were unaware of the change but they now seem to have come into line. There appear to be some companies offering lower prices now but the per ton price structure seems here to stay.
Some skip companies have protested at the change and are lobbying for a postponement of the introduction to allow their customers to adjust to the new pricing. Some large businesses seem to welcome the move saying that it will produce a level playing field and have a positive environmental benefit. This might work for big projects where it is possible to hire a trommel, screen your waste and sell the soil and aggregate on, but for domestic garden construction and drive installations that doesn’t make sense.
In the long run this is going to force a major change in the way we design gardens but in the short term I can see this causing a lot of customers to reconsider whether they can afford to continue with designs they have already committed to. It will probably encourage a lot more fly tipping as an empty skip will really look like gold dust.
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Maybe you can direct us to where we can find this new guidance as I am a bit confused how such a devastating increase in charges has slipped under the radar unnoticed.
are you sure this is right, most skip companies screen and then sell on their topsoil, it shouldnt go anywhere near a landfill site!
Here's the long version:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebAp...
Our skip company is 'reviewing' (I think that means understanding) as we changed our Yard Skip on Tuesday and it was mentioned. We await the outcome, as well, along with clarification for green waste disposal as guidance we have is that green waste does not go to landfill and is not subject to any change (...we hope....).
I am not sure about it for other inert 'waste products'....
There were two links in the original post, but maybe they weren't clear:
http://www.hmrc.gov.uk/briefs/excise-duty/brief1512.htm
http://www.letsrecycle.com/news/latest-news/waste-management/landfi...
Colin Hunt said:
Im booking a skip tomorrow morning for myself - Will let you know the cost - as its mixed rubble going in - that could easily be 10tons in the skip so pushing £1000 for a skip - can see alot of landscaping customers chokeing that one.
My take is that it only affects waste going into landfill.
If your skip company or recycler processes the waste efficiently soil, rubble etc SHOULD not go to landfil and thus not attract landfil tax. The more specific your are in booking the skip and not sending back contimated/mixed waste, the cheaper it will be for you.
If not look carefully at your skip supplier.....
This is why Green Waste is around half thr price to dump compared to 'general/non-descripted waste' - in that it does not attract the £64 /Tonne landfill tax.
We have a 16yard skip that is changed every 7-10days for a very good price because we guarentee its contents to be 100% green.
I was surprised and a bit frightened by Matt's original post, which I saw this morning. I phoned my skip supplier but the main contact wasn't there, just Gran who answers the 'phones when they are busy. she said "yes. it's a nightmare, the government have changed all the prices" But she didn't know what the changes were, I will ring them on Monday to find out more, but it doesn't sound good.
Thinking out loud, which I know is dangerous, What would be the obstacles to renting a bit of farm yard, and managing your own waste? Could I compost green waste and soil? stockpile rubble and either get a muck away or hire a crusher every few months? and burn the rest?
Try another company Matt - the landfill tax escalator has been set at £64/tonne this year I believe, and what has happened is that inert waste has been brought up to the same band as general waste rather than the exempt category it was in previously.
However, if your skip company wants to charge £140 for a £64 cost that's up to them. They will be underpriced by competition in no time.
Right - This afternoon I was told - All soil, all green waste same as before (£155 per skip) Mixed waste of the above - £400 per skip.
Rubble £155 same if it is ALL ruble - no mixing - as they can recycle it and sell it as type 1
All mixed waste skips are £550 - They also said they would review prices daily until they knew where they stand!
first i have herd of the new charges, but i know the local skip people only send the equivalent of one skip per twenty to land fill but the charge per skip was the same then theres the extra to put it on the road supposedly to be paid to the council ?
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