Landfill Tax Calculator 2025/26 — Skip Hire & Construction Waste

Landfill tax is an environmental tax charged on waste disposed of at licensed landfill sites. It was introduced in 1996 to encourage waste reduction and recycling. The tax is paid by landfill site operators but is passed on to customers through skip hire and waste disposal charges. HMRC administers landfill tax.

For 2025/26: Standard rate — £126.15 per tonne (applies to most general, mixed, construction and demolition waste). Lower rate — £4.05 per tonne (applies to inactive/inert waste such as clean soil, rock, bricks, concrete, and ceramics that pose no pollution risk). These rates increased significantly from 2024/25.

Landfill tax rates typically increase annually, indexed to inflation and then above inflation to encourage diversion from landfill. The standard rate has risen from £80/tonne in 2019 to £126.15/tonne in 2025. The government reviews rates in each Autumn Budget.

No. Landfill tax and VAT are separate. VAT at 20% is charged on the total skip hire cost (including the landfill tax element). For VAT-registered businesses, both the landfill tax component and the VAT can potentially be reclaimed through the VAT return, but landfill tax itself is not a recoverable input tax — only the VAT added on top is.

The lower rate (£4.05/tonne) applies to 'inactive' or 'qualifying' waste: clean soil, rock, clay, sand, gravel, concrete, bricks, ceramics, and similar materials that pose no pollution risk. Contaminated soil or mixed waste does not qualify — it is taxed at the standard rate.

Yes. Waste sent to licensed recycling or recovery facilities does not attract landfill tax. Separating and recycling construction waste, metals, wood, and cardboard can significantly reduce the proportion going to landfill — and therefore reduce the landfill tax element of skip costs. This also meets your Waste Duty of Care obligations.

The landfill site operator is legally responsible for paying landfill tax to HMRC. However, the operator passes this cost on to waste producers through disposal charges. Skip hire companies and waste processors include landfill tax in their quoted prices.

The Landfill Communities Fund allows landfill operators to divert up to 5.6% of their landfill tax liability to approved local environmental and community projects. This is separate from the main tax payment. Operators who contribute get a credit against their landfill tax liability.

Skip hire companies calculate landfill tax based on the estimated weight of waste in the skip. A standard 6-tonne skip filled with general waste would carry approximately £756 in landfill tax at the 2025/26 rate (6 tonnes × £126.15). This is included in the skip hire quote.

Under the Environmental Protection Act 1990, businesses producing, carrying, keeping, treating, or disposing of controlled waste have a legal duty of care. This includes using licensed waste carriers, providing accurate waste transfer notes, and ensuring waste is disposed of at licensed facilities. Failure to comply can result in fines.

Scotland has Scottish Landfill Tax (SLfT), administered by Revenue Scotland, with the same rates as UK LfT from 2025 (£126.15 standard, £4.05 lower). Wales has Landfill Disposals Tax (LDT), administered by the Welsh Revenue Authority, also with harmonised rates. The devolved taxes replaced UK LfT in their respective areas.

Use the Environment Agency's public register to verify licensed waste carriers and brokers. All companies transporting controlled waste commercially must be registered. Ask for the waste carrier licence number and check it on the EA's website before using any waste disposal service.