Illegal disposal of waste made taxable

As part of a crackdown on illegally disposed of waste, HMRC has announced that illegal operators will have to pay landfill tax.

The government estimates that there are around 600 sites operating illegally across England, Wales and Northern Ireland. From 1st April 2018, these sites will not only be shut down but will be liable for landfill tax on the waste they have handled.

HMRC’s Director General for Customer Strategy & Tax Design, Jim Harra, said: “These rules will go a long way to clamping down on the use of illegal waste sites, strengthening existing work in this area led by the Environment Agency. The impact of these illegal sites on landowners and the environment can be significant. By making the illegal disposal of waste taxable, we will deter the spread of this damaging activity by making it less profitable and reinforce the principle of ‘the polluter pays”.

The step is part of a crackdown on illegal operators and intends to remove the financial incentive to set up these sites and give honest operators a fairer playing field. The draft legislation was published on 13th September and is open to consultation until 25th October 2017.

Read the draft legislation here.