Landfill tax assessment: new 'loss on ignition' test
A new loss on ignition test will be carried out on landfill waste to determine the correct tax liability of fines.
Waste operators now have to have samples of their waste products tested to ensure they are paying the correct amount of landfill tax.
Samples of waste ‘fines’ must be tested in a laboratory to determine the LOI at 440 °C, under the Landfill Tax (Qualifying Fines) (No. 2) Order 2015.
The procedures for the prescribed test are clearly defined in HMRC’s Notice LFT1 and the guidance can be accessed here
This includes how to take a representative sample, sample preparation and sample treatment, specifically detailing the temperature to be used, weight of sample and length of drying.
Please note that failure to conduct the prescribed test according to the correct methodology will render all fines the landfill operator receives liable to the standard rate of landfill tax from the time of that failure until such time as the failure is put right in relation to a later quantity of fines.
Fines are classified as the smaller fractions of waste produced by mechanical waste treatment processes.
Wastes with less than 10 % LOI qualify for a lower rate of landfill tax, but there is a transitional period for wastes with an LOI up to 15 %.
Laboratories carrying out these tests should be accredited for such measurements according to ISO/IEC 17025 and should know the uncertainty associated with the measurements so that the new legislation can be accurately enforced.