On the 18th May 2012 HMRC issued new guidance on charges for landfill. The impact of this change is potentially very great for landscapers (and builders) and yet there seems to be little coverage of this change. The new guidance has been portrayed as a clarification of technical points which may be why it got so little attention but the impact was dramatic.
On the morning of 19th I rang my usual skip company to book a skip for a job next week. For central London we would usually pay around £170 + VAT, but I was told that their new charge was £100 haulage plus £140 per ton (+ VAT). As the job involves excavating a lot of soil this could mean that an 8 yard skip would cost over £1200. Given that the job was costed on the one-off price basis this means I have had to go back to the customer to discuss the project (it could cost an additional £4-5000).
A number of skip companies stopped taking bookings on the 19th and some weren’t answering the phone. Some were still offering skips at the old price because they were unaware of the change but they now seem to have come into line. There appear to be some companies offering lower prices now but the per ton price structure seems here to stay.
Some skip companies have protested at the change and are lobbying for a postponement of the introduction to allow their customers to adjust to the new pricing. Some large businesses seem to welcome the move saying that it will produce a level playing field and have a positive environmental benefit. This might work for big projects where it is possible to hire a trommel, screen your waste and sell the soil and aggregate on, but for domestic garden construction and drive installations that doesn’t make sense.
In the long run this is going to force a major change in the way we design gardens but in the short term I can see this causing a lot of customers to reconsider whether they can afford to continue with designs they have already committed to. It will probably encourage a lot more fly tipping as an empty skip will really look like gold dust.
These b*ggers sitting in their ivory towers don't make life any easier do they ? Mind you they may do a "pasty tax" and do a U-Turn.
Watch fly tipping get a lot,lot worse.
Just got another quote today for a mixed waste skip - Soil and rubble £180 - though if you chuck an old bath into it - goes to £200 - they did say that prices will change abit as they adjust to the change but the more mixed the waste the more it will cost.
Thanks Stuart. I'd point the finger of blame at the government on this one, another stealth tax with very little thought as to the consequences on businesses and hence employment.They don't seem to understand that taking money out of the economy is stifling growth therefore making the problem worse.Meanwhile, the fit and able chap with his wife and three kids across the road from one of my elderly customers continues to pick up a fortune in benefits for at least the fourth successive year.
It's not a good time to make this change and it should have been phased in if it had to come in at all.
This is bad - I can see it gutting alot of landscapers who dont have a yard to operate from and sort waste at - I tipped a cubic meter of green waste (shredded already) and they had a really good look at it, normally they just look and say which pile to tip it on Shredded or not - They said they cant afford to separate so wont take the risk of some landscaper or Gardener sticking bits of plastic of some old fence in the mix due to cost
well, i've emailed my mp, signed the petition and done the downing street contact form.my local skip co (Easy-Load) tell me they are doing what the competition are doing - they have had 4 price changes this week and are charging by the bin, whatever you want in the bin - so for a 6yd this moring, it's £150+vat or £180 inc. could be worse i suppose.
they tell me this is likely to change on a daily, weekly or monthly basis till they work out how to price for the changes.