Builders To Pay New Waste Tax
Greengates Builders Merchants Accrington, Lancashire asks What Do You Think About New Tipping Tax
The taxman has upped the landfill rate on crumbled building waste from £2.50 a tonne to an eye-watering £64 a tonne.
Insiders said the move “could destroy the waste industry” — and would trigger a rise in illegal fly-tipping.
The row comes as the construction industry suffers the biggest downturn for THREE YEARS — and is blamed for dragging Britain into a double-dip recession.
Her Majesty’s Revenue and Customs issued a “clarification note” on Friday May 18.
Furious skip hire companies have said that operators were going bust “as we speak”.
A company that employs six drivers and has 300 skips would of payed £100 each to tip last week this week it will cost over £400.
The new rate covers “fines” — the rubble left over when most of the building material has been recycled. The fines were charged at the lower tax rate of £2.50 — because they are mostly harmless.
But HMRC now says builders must pay the full £64 tax.
HMRC said the industry had been warned of the new rate in September 2009. But building experts said the suggestion was “laughable”.
One said: “This has been a big grey area. But prices have only starting shooting up after HMRC put out its clarification note.” Another told industry bible MATERIALS RECYCLING WEEK: “This is the biggest pricing change since the landfill tax was first introduced in 1995.”
The £64-a-tonne rate already covers municipal waste, largely collected by giants such as SHANKS or BIFFA. They also operate landfill sites.