VAT pushes up cost of taking rubbish to tip

Fears that extra charges on some waste will encourage fly-tipping and cause misery for farmers

HOMEOWNERS being charged for taking their own waste to rubbish tips are facing higher prices after councils added VAT. The Daily Telegraph can reveal HMRC is taking 20 per cent when residents are charged for dumping nonhousehold waste, such as doors and kitchen worktops, at recycling centres.

Last year The Telegraph revealed 47 local authorities were charging a “tip tax”, with councils insisting they needed to raise funds and were under no obligation to accept non-household waste.

The Department for Environment, Food and Rural Affairs (Defra) announced a review into the fees, following an investigation by this newspaper that unearthed a chaotic system. It emerged that some councils were charging for dumping certain goods, while neighbouring authorities granted free access. The review was put on hold due to coronavirus.

Last night there were fears the price increases could encourage fly-tipping.

Buckinghamshire County Council, which introduced charges in 2019, said they had been asked by HMRC to start charging VAT on non-household waste, which will be implemented on Aug 1.

The council said they will enforce the charge. This means that the cost of disposing of a shed, which was £17.50, will now be £21.00, disposing of a door or lavatory will now cost £12 rather than £10 and a plasterboard sheet has risen from £7 to £8.40.

The council had not been charging VAT previously due to conflicting advice from its finance and legal departments. However, a decision was made in January to apply it to nondomestic waste left at rubbish tips.

A report for the council highlights the impact of coronavirus in deciding to add VAT to prices. The report, compiled by Bill Chapple, Cabinet Member Environment and Climate Change, and seen by The Telegraph, said: “This Covid impact alone is likely to cause a budget pressure of £290,000; the VAT issue would only worsen this position still further.”

Somerset Waste Partnership updated their rates on April 1 so that asbestos would be charged at £13.40 (£11.17 plus VAT) and plasterboard at £4.50 (£3.75 + VAT).

Other councils have added VAT to their prices, including Surrey County Council which charges £4 for a sink, and Suffolk County Council which charges £2 for a toilet bowl.

Richard Mcilwain, deputy chief executive of Keep Britain Tidy, said: “We are concerned that imposing charges for certain wastes at household recycling centres presents a barrier to recycling and could encourage fly-tipping.

“Clearly, any increase in these charges by the imposition of VAT could exacerbate this issue.”

Jonathan Roberts, of the CLA, which represents rural property owners, said: “When unnecessary costs deter people from disposing of waste properly, some unfortunately will dump their waste on farmland, often leaving farmers to pick up the tab.”