How to save money on landfill tax by streaming your skip waste
HMRC recently promised to crack down on the evasion of Landfill Tax, thanks to a £150m black hole in unpaid revenue mentioned in the most recent available figures from 2014-15.
After speaking to our skip hire clients, we have come to the conclusion that many businesses assume that all kinds of waste can be thrown into their skips. Unfortunately, that just isn’t the case and can lead to huge Landfill Tax tariffs.
As with any form of recycling, refuse which finds its way into skips needs to be streamed to be at its most cost effective, and doing it properly can actually save a huge amount of money.
What can't you put in a skip?
Electronic waste (WEEE), such as TVs, fridges and computers are prohibited from being skipped, as well as items which are designated as hazardous. This includes paint, solvents, batteries and practically anything which can give off toxic fumes or explode in a fire.
Needless to say, all forms of asbestos are also on the proscribed list.
Which items are safe to skip?
Bricks, glass, soil, rocks and other largely outdoor materials are classed as ‘inert’ waste and should ideally have their own skips.
This type of debris can be included with general waste skips, which is where you’d usually find household refuse made from wood, plastic or metal, but this is where things can get expensive.
Keep inert and general waste separate
Both inert and general waste can be dealt with relatively simply on their own, but if stray plastic containers or the remains of uPVC doors find their way into what should be an inert waste skip, the materials are classed as contaminated and costs can escalate rapidly.
Inert waste is currently charged at the lower rate of £2.65/tonne, but if the load is deemed to be contaminated by other forms of detritus, it will be liable for the higher general waste rate of £84.40/tonne (which goes up to £88.95 from April 1st 2018).
The Landfill Tax payable can really mount up if proper skip management isn’t in place, and we aim to help all of our clients to be as efficient as possible with their waste, as well as advise them on how best to reduce their Landfill Tax obligations.
Ultimately, we want to divert 100% of waste away from landfill well in advance of the Government’s target of the year 2050.