1 APRIL 2019 by Will Date

Landfill Tax rates have moved above £90 per tonne for the first time from today (1 April 2019).

The latest tax rates – which are currently the same for all areas across the UK – are: for standard rate material £91.35 and lower rate (‘inert’) material (qualifying fines with a loss of ignition of 10% or lower) £2.90 per tonne.

Landfill Tax
£ per tonne (England)
From 1 April 2020 From 1 April 2019 From 1 April 2018 From 1 April 2017 From 1 April 2016
Standard rate 94.15 91.35 88.95 86.10 84.40
Lower rate 3.00 2.90 2.80 2.70 2.65

The increase is in line with the Retail Prices Index (RPI), rounded to the nearest 5 pence, confirmed by the Treasury in the Autumn 2018 Budget.

HMRC has also lined up a further rise in the standard tax rate from 1 April 2020 when it will jump £3 to £94.15 per tonne (see above table).

Landfill Tax

Landfill Tax is charged on material disposed of at a landfill site or an unauthorised waste site. As such, said the Treasury, it encourages “efforts to minimise the amount of material produced and the use of non-landfill waste management options, which may include recycling, composting and recovery”.

The tax was first introduced on 1 October 1996 to encourage waste producers and the waste management industry to switch to more sustainable alternatives for disposing of material.

There is a lower rate of tax (which applies to less polluting qualifying materials covered by two Treasury Orders) and a standard rate (which applies to all other taxable material disposed of at authorised landfill sites).

Previously, the Landfill Tax applied across the UK but from 1 April 2015 it was devolved in Scotland and from 1 April 2018 in Wales.

Landfill tax receipts 1999-2018 (source: ONS)

According to the Office for Budget Responsibility Landfill Tax is likely to have raised around £0.9 billion in 2018-19. Around 77.9% of this total from UK government landfill tax, with the remaining 17.1% and 5.1% coming from the Scottish landfill tax and Welsh landfill disposals tax respectively.