As members of the rural farming community in England and Wales, you are likely familiar with the importance of the reuse of materials on land for trackways, hardstandings and as construction materials.
You will be familiar with environmental exemptions such as U1, which permits the use of many types of waste material (e.g. recycled bricks/ concrete or excavated soils and stone) for construction.
One critical aspect that is overlooked and one which you ignore at your peril is the liability associated with unauthorised waste deposits.
What qualifies as an unauthorised waste deposit?
So, if the material tipped on your land is not one of the specified waste streams, or the quantities exceed the limits under the U1 exemption, it will be an unauthorised deposit.
Under the current Landfill Tax regime, any unauthorised deposits of waste on land can attract significant penalties, including the Standard rate of Landfill Tax.
Landfill Tax was introduced to encourage the diversion of waste away from landfills towards more environmentally friendly waste management options, such as recycling and composting.
The tax applies to waste disposed of at authorised landfill sites, but it also extends to unauthorised waste deposits, which can be particularly relevant for rural landowners.
Excise Notice LFT1 provides detailed information about Landfill Tax rules and obligations. It highlights that unauthorised waste deposits are liable to Landfill Tax at the Standard rate, which is significantly higher than the lower rate applied to inert waste.
This means that any unauthorised dumping of waste on your land can result in substantial financial penalties.
Penalties for unauthorised waste disposal on agricultural land
For farmers, the implications of unauthorised waste deposits can be severe. Not only does it pose environmental risks, but it also attracts hefty fines and taxes.
The Standard rate of Landfill Tax (currently £126.15/tonne) chargeable in England for unauthorised deposits is designed to be a deterrent, ensuring that waste is managed responsibly and legally. In Wales the unauthorised deposit rate is £189.25/ tonne.
If you are assessed for landfill tax in relation to waste deposits you also face a penalty and interest charges. A free tip of material for a trackway might not seem such an attractive idea after all. 5,000 tonnes of what seemed acceptable material might land you a bill of £630,750 for Land Fill Tax (England) plus interest and penalties.
If you decided to appeal to the Tax Tribunal you would first have to pay the claimed tax or otherwise persuade HMRC/ The Tribunal that this would cause hardship and show cause why you should not have to pay the tax.
How to protect your farm from illegal waste dumping
Conduct regular inspections of your land to ensure no unauthorised waste deposits are present. Implement secure boundaries to prevent illegal dumping by third parties.
If you intend to accept material, first ensure your site is registered with an appropriate exemption(s) or you hold a suitable permit that the material you intend to import is suitable for the intended use without further treatment (other than as authorised by exemption/ permit).
You should also check that the:
- Material is covered by the exemption/permit
- Source of the material (i.e. that it has come from an authorised site or a specific development and the material is uncontaminated),
- Credentials of the supplier (are they a registered waste carrier)
- Facility is producing the material in a permitted facility, and in any event can the operator evidence that the materials are suitable for your intended purpose and do not contain hazardous properties.
Legal support for Landfill Tax issues and unauthorised waste
Understanding the implications of unauthorised waste deposits and the associated Landfill Tax liability is essential to your peace of mind and financial well-being.
Don’t take chances.
Before you accept waste materials on site, ensure that you have all the necessary authorisations in place and ensure the waste you accept, both in terms of its character and amount, meets the requirements of the authorisation.
If in doubt, seek professional advice before you take the plunge.
If you are unsure about your obligations or are concerned about potential liability for unauthorised waste deposits, contact John Dyne for expert legal advice and guidance.