Landfill Tax

Landfill Tax

Landfill Tax

Landfill Tax Update

The landfill tax was introduced in 1996 as an economic tool to reduce pollution, by placing a levy on all waste disposed of at landfill. This started at 7.00 per tonne. As you are no doubt aware the Government has since increased landfill charges on the 1st April each year. Two years ago the annual increase rose from 3.00 per tonne to 8.00 per tonne, meaning current landfill charges stand at 40.00 per tonne. This year sees the third of the three proposed 8.00 per tonne increases, meaning a new landfill charge of 48.00 per tonne will apply from April 1st 2010, representing a further increase of over 16% on last year. Landfill tax affects ALL waste producers and waste management companies throughout the UK, and the tax unfortunately cannot be reclaimed.

Whilst historically the April 1st tax rise has directly lead to increased costs for skip hire and waste management, the improved recycling capabilities of our selected partners means such rises this year, whilst not absent, at least shouldn't be as widespread, to quote from an industry expert:

"I understand that our customers care about the environment, however I am also more than aware of the effect that the recession has had. The majority of our customers have seen a dip in their own turnover and therefore find it even harder to accommodate large governmental increases. With increasing costs and decreasing work, it has become essential to find a solution to the issue. As such we have been working with our network of depots, selecting those with good recycling capabilities often in excess of 80% to carry out the majority of our work. As landfill tax is paid only on the waste that is landfilled, the more we can recycle the less tax we have to pass on. We see this as a great solution to reduce the impact of increasing costs, and also ours and our customer's impact on the environment"

The increases in landfill tax is a huge driving force behind a "greener Britian" as each year companies such as skip hire firms are having to working hard to recycle more and more of the waste they collect, otherwise they will have to pass on the extra cost to the customer thus making them uncompetitive and loosing business.

It pays to be savvy when choosing a skip hire company, as one that is not recycling a high percentage of waste may end up costing you a lot more due to the increased landfill tax. Always look for quality assured (ISO standard) companies, to ensure you are not stung by excess landfill charges.

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