Waste Disposal: Taxation
The question
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of the misclassification of waste into the wrong landfill tax band by the operators of licensed sites on the level of unpaid landfill tax.
Answered by James Murray
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. These statistics are published annually and are available at: Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023 - GOV.UK (www.gov.uk). The latest estimate for England and Northern Ireland of the Landfill Tax gap is 14.5% of the theoretical Landfill Tax liabilities, or £100 million, in the 2022 to 2023 tax year.
The illustrative estimates of the monetary components of the 2022-23 Landfill Tax gap are £75 million at unauthorised sites and £90 million of misclassified plus £35 million underdeclared waste at authorised sites less £100 million compliance yield (tax gap estimates are calculated net of compliance yield).
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