This means that waste materials once exempt from the tax will now be charged at the full rate, and its possible this may be imposed retrospectively, from as far back as 2009. The fines were originally charged at the lower tax rate of £2.50 because they were considered harmless.
HMRC issued a clarification note on 18 May responding “to concerns expressed by landfill operators that some companies were not paying the right rate of tax”. This will have a significant impact on the cost of waste disposal. Skip-hire companies are opposed to the tax and a group of 10 waste firms wrote to ministers last week urging for the higher charge to be suspended for six months while a full consultation is carried out.