SLfT2001 - Determining the amount of tax payable

Introduction

This chapter of guidance will help you determine the amount of tax that you have to pay in relation to SLfT, including whether a disposal is chargeable at the standard rate or lower rate and rules regarding the calculation of the weight of waste. It mostly reflects the provisions of:

The Scottish Landfill Tax (Qualifying Material) Order 2016;

The Scottish Landfill Tax (Standard Rate and Lower Rate) Order 2024; and

Part 9 of The Scottish Landfill Tax (Administration) Regulations 2015 (as amended by The Scottish Landfill Tax (Administration) Amendment Regulations 2015).

SLfT2002 – SLfT tax rates

SLfT is chargeable by weight and there are currently two rates for taxable disposals which are set out in The Scottish Landfill Tax (Standard Rate and Lower Rate) Order 2024 and apply to taxable disposals made on or after 1 April 2024:

• the lower rate of (£)3.30 per tonne, which applies to those less polluting wastes listed in The Scottish Landfill Tax (Qualifying Material) Order 2016; and
• the standard rate of (£)103.70 per tonne, which applies to all other taxable waste.

Where the material disposed of consists entirely of non-qualifying material, the amount of tax charged on the taxable disposal is to be found by multiplying the standard rate by the weight in tonnes of the material disposed of.

tonnes of standard rate material disposed of     x     (£)103.70     =    Tax chargeable (£)

Where the material disposed of consists entirely of qualifying material, the amount of tax charged is to be found by multiplying the lower rate by the weight in tonnes of the material disposed of. A load that comprises of more than one group of qualifying material is still qualifying material and will be chargeable at the lower rate.

tonnes of qualifying material disposed of      x     (£)3.30    =     Tax chargeable (£)

Where a load being disposed of contains both standard-rated and lower-rated materials, tax is due on the whole load at the standard rate but see SLfT2006 for guidance in circumstances where a load wholly consists of  qualifying materials apart from a small amount of standard-rated material.

tonnes of load containing both standard and lower-rated materials disposed of     x    (£)103.70     =     Tax chargeable (£)

LT(S)A 2014 section 13

The rates of SLfT that applied in periods prior to 1 April 2024 can be found on the secondary legislation page.

SLfT2003 - Qualifying material for the lower rate

The Scottish Landfill Tax (Qualifying Material) Order 2016, which outlines the qualifying material to which the lower rate of SLfT applies, is summarised in the table below. A load that comprises more than one group of qualifying material is still qualifying material and will be chargeable at the lower rate.

SLfT2004 - Rules for setting qualifying material

In drawing up wastes to be listed in any legislation setting out qualifying material (as set out currently in The Scottish Landfill Tax (Qualifying Material) Order 2016), the Scottish Ministers will have regard to the rules set out below.

Non-hazardous:

Wastes which are not 'hazardous’ within the meaning of article 3.2 of the revised Waste Framework Directive (2008/98/EC), unless the material has no practical alternative waste management option and must be disposed of to landfill.

Low potential for greenhouse gas emissions:

Wastes which are not biodegradable, have a low organic content or do not break down under the anaerobic conditions that prevail in landfill sites to produce methane. These include inert waste within meaning of article 2(e) of the Landfill Directive (1999/31/EC); and waste with little or no organic content such as inorganic residues or completely combusted residues from the incineration of biodegradable/organic wastes.

Low polluting potential in the landfill environment:

• waste where the contaminants are unlikely to become mobile in the landfill and any leachate produced has little or no pollution potential;
• where the pollution potential of the waste is reduced if deposited alone in mono-fill landfill sites or within separate cells (not mixed with other wastes) within a landfill site;
• the engineering requirements for the landfill are lower than would be the case for a non-hazardous landfill (as laid out in the Landfill Directive) by virtue of a risk assessment agreed with the regulator; and
• the aftercare period and requirements are significantly lower than would normally be required for a non-hazardous waste landfill, based on a risk assessment agreed with the regulator.

LT(S)A 2014 section 13

SLfT2005 - Evidence required for the lower rate

You must keep and provide sufficient evidence to substantiate applying the lower rate of tax to any particular disposal of waste. If sufficient evidence cannot be provided to demonstrate how the waste qualifies for the lower rate, the standard rate of tax will be payable.

This includes obtaining (and then keeping and providing when required) sufficient evidence to substantiate that the lower rate of tax should apply after following the guidance outlined in SLfT2006 (for waste disposals wholly consisting of qualifying material apart from a small amount of non-qualifying material). For example, you will need to obtain (and then keep and provide when required) records relating to any Loss On Ignition (‘LOI’) test that is required where the waste material consists of qualifying fines apart from a small amount of non-qualifying material.   

The only determining factor as to whether waste is qualifying material chargeable at the lower rate of SLfT is whether it is listed in and complies with the criteria contained within The Scottish Landfill Tax (Qualifying Material) Order 2016 (the material listed in the Order reflect criteria that the Scottish Ministers have set in relation to determining what can be listed as qualifying material – see SLfT2004).

Whether or not waste is considered to be inert for environmental protection purposes is not relevant to matters of tax liability. Equally, the fact that waste is listed in the Order does not mean that the waste is inert for environmental protection purposes.

To qualify for the lower rate, the waste transfer note (which is required to accompany all movements of waste) must accurately record the composition of the load of waste, setting out specifically which qualifying materials are contained in the load so that it can be related to the terms used in the Order. The waste transfer note must accurately describe the waste for standard rate too.

The waste transfer note may cover individual loads or it may be a 'season ticket' covering a number of loads sent for disposal to a landfill site over a period of time.

If you operate an in-house landfill site and have applied the lower rate to waste which you have disposed of in that site, you will need to provide evidence (such as production records and testing analysis) to show that the waste qualifies for that rate.

The requirements relating to the waste transfer note described above are for tax purposes. They in no way override or affect any obligations in relation to the waste transfer note in environmental protection law, including the requirement to define the waste source by reference to the European Waste Catalogue codes.

Some waste streams may be sufficiently complex in nature that analysis may be required to demonstrate that they qualify for the lower rate of tax. For example, trommel fines (the residual materials left after processing activities are undertaken at waste transfer stations, waste recycling/treatment facilities or material recovery facilities) may need to be subjected to a loss on ignition test to demonstrate that the fines are sufficiently non-polluting to be taxed at the lower rate.

SLfT2006 - Qualifying materials containing a small amount of non-qualifying material

SLfT guidance on determining the tax rate for a waste load wholly consisting of qualifying material apart from a small amount of non-qualifying material

Section 13 of the Landfill Tax (Scotland) Act 2014 specifies the amount of tax charged on a taxable disposal. Where the material disposed of consists entirely of qualifying material, the amount of tax charged is to be found by multiplying the lower rate by the weight in tonnes of the material disposed of.

Section 14 makes special provisions in relation to qualifying material. Revenue Scotland, as the tax authority, is permitted to direct that where material is disposed of, it must be treated as qualifying material if it would in fact be such material but for a small quantity of non-qualifying material.  

Please see guidance on the qualifying material at the lower rate  - SLfT2003

A direction by Revenue Scotland under section 14 has the force of law. 

In this section:

• ‘fines’ has the meaning given in article 2 of the Scottish Landfill Tax (Qualifying Material) Order 2016 (“the Qualifying Material Order”); The Scottish Landfill Tax (Qualifying Material) Order 2016 (legislation.gov.uk)
• qualifying material’ means material which is listed in and meets the conditions set out in (Qualifying Material Order; and ‘non-qualifying material’ means material which is not listed (and/or does not meet the conditions set out) in that Order and which is, therefore, chargeable at the standard rate. 

‘fines’ has the meaning given in article 2 of the Scottish Landfill Tax (Qualifying Material) Order 2016 (“the Qualifying Material Order”); The Scottish Landfill Tax (Qualifying Material) Order 2016 (legislation.gov.uk)

If the waste load contains ‘fines’ then in addition to the 'General guidance', the ‘Qualifying Fines’ guidance below also applies.  

If the waste load consists of soils then in addition to the 'General guidance’, the ‘Waste soils’ guidance below also applies. 

General guidance

Revenue Scotland has the power to direct that material disposed of can be treated as qualifying material if it would so qualify but for the presence of a small amount of non-qualifying material. 

In this guidance, we set out the circumstances when material disposed of is to be treated as qualifying material notwithstanding a small quantity of non-qualifying material. As this amounts to a direction for the purposes of section 14(2) of the Landfill Tax (Scotland) Act 2014, it has the force of law. 

Scottish landfill tax is a self-assessed tax. It is the responsibility of taxpayers to decide whether a particular waste load is to be treated as qualifying material in accordance with this guidance. 

You must retain evidence to support your approach. Revenue Scotland may ask to see evidence to justify application of the lower rate. In particular, we may ask to see waste transfer notes as part of the evidence. The waste transfer note must include an accurate description of the non-qualifying elements of the waste together with nan indication of the quantity in proportion to qualifying material. For what we mean by waste transfer note, see section 5.2 below. 

We are aware that some waste streams, which may otherwise be liable for tax at the lower rate as qualifying material, may arise with small amounts of non-qualifying (or standard-rated) materials contained within them as contaminants. This includes fines and contaminated soils, which generally contain a mixture of qualifying and non-qualifying materials, and which make the whole load liable for tax at the standard-rated.

Where:

• it is unreasonable to have prevented this contamination at source; and
• it is subsequently unreasonable, or there is no practical way, for these contaminants to be removed,

then the whole load can be taxed at the lower rate. Any load which is hazardous waste as defined by Directive 2008/98/EC (see SLfT2004) must, however, be taxed at the standard rate. 

It is a requirement of the Qualifying Material Order (Article 4), that you retain the evidence, as detailed in the Qualifying Fines guidance below, to justify any application of lower rate to the load.

To enable the load to be taxable at the lower rate, the non-qualifying material in question must not have been added to the qualifying material making up the majority of the load. For example, it must not have been deliberately or artificially blended or added to the qualifying material(s) after or in connection with removal from its originating site. Such an addition would make the entire load taxable at the standard rate as non-qualifying material. The only exceptions to this are when:

• standard-rated material needs to be used to contain the lower-rated qualifying material; or
• standard and lower-rated material at a Materials Recycling Facility are mixed prior to treatment to enable their treatment and segregation.

In cases of doubt the material will be taxed at the standard rate unless you can demonstrate that the material qualifies for the lower rate of tax and that all reasonable and practical measures have been taken to remove contaminants contained within the material.

The lower rate of tax may only be applied to a load containing a small amount of standard-rated material if the standard-rated material was formed with the lower-rated waste at the same time, or it is used as necessary packaging and all reasonable and practical measures have been taken to prevent, reduce and remove the standard-rated material from the lower-rated material.

For example, the following would be accepted as qualifying for the lower rate:

• a load of bricks, stone and concrete from the demolition of a building that has small pieces of wood in it and small quantities of plaster attached to bricks as it would have not been feasible for a contractor to separate them. (Note: large pieces of wood or plaster which could be removed by hand or other means would make the entire load taxable at the standard rate);
• a load of sub-soil that contains small quantities of grass. (Note: turfs of grass which could have been removed prior to the load of sub-soil being created would make the entire load taxable at the standard rate);
• waste such as mineral dust packaged in polythene bags for disposal; and
• a load of sub-soil and stone from street works containing small amounts of tarmac (Note: large pieces of tarmac which could be removed by hand or other means would make the entire load taxable at the standard rate).

It is your responsibility to decide whether a particular load disposed of at your site contains any standard-rated material.

If it does contain such waste you need to satisfy yourself that the load:

• is not hazardous waste; and
• contains only a small quantity of non-hazardous non-qualifying (or standard-rated) waste, which was formed with the qualifying lower-rated material and either could not be removed or is necessary for packaging reasons.

The level of difficulty in separating the standard-rated waste from the lower-rated waste cannot be used to justify applying the lower rate of tax if the standard-rated waste is hazardous or it is more than a small amount of the total load. You will need to keep records so that you are able to justify your decisions to us if required.

The following guidance must be followed in full, as directed by Article 4 of the Qualifying Material Order.

LT(S)A 2014 section 14

Qualifying Fines

Contents

1. Fines
2. Flowchart for determining the rate of SLfT chargeable per load of fines
3. What evidence must I keep for qualifying fines?
4. WM3 Classification
5. Pre-Acceptance Checks
6. Loss on Ignition (LoI) Test for Fines
7. Prescribed Test
8. LoI Test Methodology
9. What if a Tested Sample Is Above the LoI Threshold?
10. Loss on Ignition Test Result Form
11. Can a sample be retested that is above the LoI threshold?
12. Frequency of Testing
13. Power to direct a test

1. Fines

Fines are defined in the Qualifying Material Order as "fractions of material produced by a waste treatment process that involves an element of mechanical treatment."

Only qualifying fines may be chargeable at the lower rate, as qualifying material, and only where the conditions set out in article 4 of the Qualifying Material Order are met.

Qualifying fines are defined in the Qualifying Material Order as either:

• fines that consist entirely of qualifying material, or
• fines that consist entirely of qualifying material but for a small quantity of non-qualifying material

1.1 Fines consisting of entirely qualifying material

Where fines comprise entirely of materials listed in the Qualifying Material Order, the first load of the material you receive must be subjected to LoI testing following the prescribed methodology [section 7]. The material tested must return a LoI test result of 10% or less in order to qualify for the lower rate of SLfT. You are only required to test the material again if you have any reason to think the material tested has changed and is no longer entirely qualifying material.

The description of the material on the waste transfer note must adequately identify that the material consists of wholly qualifying fines. You should also issue a pre-acceptance questionnaire and declaration for completion by the producer that produces fines for disposal at your landfill site as detailed in section 5 below, and you should require the producer to notify you of any change to the material tested that would cause its classification to vary.

1.2 Qualifying fines with a small amount of non–qualifying material

In order to qualify for the lower rate, qualifying fines that contain a small amount of non-qualifying material must meet the conditions set out in this guidance (see in particular the flowchart at section 2); otherwise they are liable to the standard rate of SLfT.

Fines that originate from a waste producer that accepts both non-qualifying and qualifying mixed waste inputs can qualify for the lower rate of SLfT, if the material has been subjected to a satisfactory treatment process. Such a treatment process could occur either before the mixed waste has been subjected to the mechanical process that produces fines or alternatively the process could involve the further separation of the fines after they have been produced.

The treatment process and evidence in support of the lower rate must demonstrate that either way as much of the non-qualifying material has been removed as reasonably possible. This treatment process must be detailed in the pre-acceptance questionnaire.

An example of the types of treatment process that could produce qualifying fines may include:

• the waste producer runs two separate lines, one for mixed waste from which the fines are not qualifying and are Standard Rated; and one for mainly qualifying waste with some non-qualifying material, from which the fines may be qualifying fines
• the waste producer produces fines through their treatment process from mixed waste sources but then subjects it to a further fines treatment process which can remove the majority of the non-qualifying material to leave qualifying fines
• However, if a waste producer shreds mixed municipal waste and subjects it to a basic treatment process, with no initial or further separation of non-qualifying material the waste would not be qualifying fines at this stage of processing.

Fines cannot qualify for the lower rate of SLfT if:

1. They result from any deliberate or artificial blending or mixing of any material before disposal at a landfill site.
2. If they are the output of a waste producer who accepts mixed waste inputs and they have not been subjected to any kind of satisfactory treatment process which separates out non-qualifying from qualifying material before disposal.
3. It contains non-qualifying material that could reasonably have been removed.

1.3 Fines produced by Landfill Operators

A landfill operator who produces their own fines on-site before disposing of them to landfill is considered to be a waste producer for the purposes of this guidance. A landfill operator is therefore required to carry out the same processes outlined below for fines they produce themselves as they are with fines produced elsewhere (i.e. by a separate waste producer).

2. Flowchart for determining the rate of SLfT chargeable per load of fines

All of the conditions of the qualifying fines flow chart and the Qualifying Material Order must be met for each load of qualifying fines containing a small amount of non-qualifying material to be liable at the lower rate of SLfT.

Flowchart Diagram PDF

3. What evidence must I keep for qualifying fines?

You are responsible for ensuring that you accurately declare the amount of SLfT due on material disposed of as waste at your landfill site. You may need to justify your decision to classify fines as qualifying for the lower rate of SLfT to us. You must therefore keep and provide sufficient evidence to substantiate applying the lower rate of SLfT to any particular disposal of fines.

You must produce and retain appropriate records to show that fines disposed of at your landfill site are eligible for the lower rate of SLfT, for a period of 5 years. Evidence contained in the WM3 classification, pre-acceptance questionnaires, visual inspections, waste transfer notes and loss on ignition test results will help you to support your decision.

4. WM3 Classification

As part of their duty of care, waste producers must classify the waste that their business produces and WM3 is the current UK standard that they must use. (See: Technical Guidance WM3: Guidance on the Classification and assessment of waste).

In order for the lower rate of SLfT to apply to the load of qualifying fines, it must not be classified as hazardous waste under WM3. You should review evidence of non-hazardous classification and be satisfied that it appears to be a true and accurate assessment. A copy of this evidence (which you should already hold ahead of accepting any waste), should be retained by you to support the lower rate of SLfT applied to the load. This requirement to obtain evidence of a waste stream’s WM3 classification is separate and distinct from any obligations arising as a result of the duty of care already owed by the waste producer or the landfill operator.

Chemical analysis, and the retention of records in relation to it, will only be necessary if it is required under the WM3 procedure for classification of waste.

5. Pre-Acceptance Checks

You should complete a number of pre-acceptance checks with waste producers to ensure the fines qualify for the lower rate. The nature of these pre-acceptance checks will vary depending on your individual circumstances and the particulars of your process of accepting waste.

Examples of the different types of checks are set out below. These are all forms of evidence specified for the purposes of article 4(2) of the Qualifying Materials Order.

In the absence of satisfactory evidence gathered from the pre-acceptance checks that demonstrate the fines qualifies for the lower rate of SLfT, the standard rate will apply to the fines.

5.1 Example Pre-acceptance Questionnaire

You should issue a questionnaire and declaration for completion by the waste producer that produces fines for disposal at your landfill site. The questionnaire provided outlines the information that is required in order to determine that the fines received are qualifying. The answers to the questionnaire will also assist you in determining the appropriate frequency of testing required (Please see section 13.3 – frequency of testing table).

You may use your own questionnaire however you should ensure it contains all of the information indicated in the example questionnaire.

Where the waste producer disposes of more than one fines waste stream, you must obtain information and complete a questionnaire for each waste stream.

The information provided by the waste producer must be current, and must be reviewed at least annually or more frequently if you have any reason to think the information provided has changed. You must require the waste producer to notify you of any change to the waste stream that would cause it’s classification to vary. You must be satisfied that it appears to be a true and accurate assessment.

For example, seasonal changes may impact on input materials that are used to produce fines. In these circumstances you would review the information provided for the waste stream in the pre-acceptance questionnaire and require the waste producer to notify you of the change to the fines input material.

Pre-Acceptance Questionnaire.pdf

Where the information supplied by the waste producer in the pre-acceptance questionnaire does not support that the material is liable for the lower rate of SLfT, the standard rate will apply to the material.

5.2 Waste Transfer Notes

Where we refer to a waste transfer note in this guidance we mean a written description of the waste kept by the transferor and transferee of the waste. The description on the waste transfer note must adequately identify the type of waste and whether it is qualifying or non-qualifying material.

For example, a description of ‘fines’ adequately describes the type of waste, but does not identify what rate of SLfT applies. Similarly, a description of ‘lower rate’ identifies the rate of SLfT, but not the type of waste, whereas ‘qualifying fines – lower rate’ provides both an adequate description of both the waste type and the applicable rate of SLfT.

Some examples of descriptions that would adequately identify the rate of SLfT payable are:

• Qualifying fines – lower rate
• Screened subsoil  from stones containing a small amount of paper and wood – lower rate
• Fines – standard rate
• Mixtures of materials from the mechanical treatment of waste – standard rate

This description should be supported by the detailed description of the waste given in the pre-acceptance questionnaire.

5.3 Visual Inspection

For SLfT purposes, inspection of disposals is your responsibility when you accept delivery of the waste. A visual inspection should be conducted when the waste is accepted. If the inspection does not indicate the material is liable for the lower rate of SLfT, the standard rate should apply to the material.

The visual inspection should confirm that the description of the material on the waste transfer note accurately matches the material delivered to your site. This should be consistent throughout the load.

6. Loss on Ignition (LoI) Test for Fines

An LOI test determines the organic content of material. The difference in the mass of the tested material before and after the ignition process is used to calculate the LOI result. The LOI result will inform whether the waste is liable at the lower rate of SLfT, but is not the only determining factor as shown by the flowchart above. For fines to be treated as qualifying material, they must give an LOI result of 10% or less.

However, LOI test alone will not be sufficient for the waste to amount to qualifying material and be taxable at the standard rate. For qualifying fines that include a small amount of non-qualifying material, the LOI test must be carried out along with the other procedures described i.e. WM3 classification, visual inspections, checking the waste transfer notes and completing a pre-acceptance questionnaire.

LoI test results that are 10% or less LoI threshold must be kept as supporting evidence  of the lower rate of SLfT.

7. Prescribed Test

Making a Representative Sample

The sample of fines you send for testing must be representative of the whole load or stockpile. To take a representative sample the following methodology applies:

• the sample must be taken from across the whole load or stockpile of fines i.e. top, middle and bottom
• a composite (master) sample must be produced from a mix of sub-samples taken from at least 6 different places across the whole load of fines
• the sub-samples must be selected at random
• the sub-samples must be thoroughly mixed to ensure that a representative 1kg composite sample is sent for testing

8. LoI Test Methodology

You must arrange to undertake the LOI test prescribed below for SLfT purposes:

Sample preparation

1. dry the 1 kg sample at a temperature of between 30° C and 50° C, until a constant weight is achieved
2. cone and divide the 1kg sample to select a 200g sub-sample
3. remove material, exceeding 20 mm that conforms to Group 1 and Group 2 of the Scottish Landfill Tax (Qualifying Material) Order 2016 from the sub-sample. Record the weight of the sub-sample and of the removed material
4. grind the remaining part of the sub-sample to a particle size of 2mm or less to produce a homogenous sample. Any material not passing the 2mm sieve must be added back into the ground sample and the combined sample mixed and homogenised
5. Any material that does not pass the 2mm sieve must be weighed and recorded on the lab result form e.g. non-ground material – 15g comprising wood, metal nail, plastic

The prepared sample should be retained in case a retest is needed or Revenue Scotland wishes to test the material. You must preserve this prepared sample for 3 months from the date the LoI test is completed.

Sample treatment

1. Place 20g of the homogenous ground sample in a dried, weighed dish and weigh
2. Dry the sample in an oven at 180° C to a constant weight,
3. Cool in a desiccator for a minimum of 45 minutes
4. Record the weight of the sample
5. Transfer the sample to a muffle furnace at a temperature of 440° C for a minimum of 5 hours
6. Cool in a desiccator as before and reweigh

LoI Calculation

Calculate the loss on ignition at 440° C as a percentage of the material after the initial drying at 30° to 50° taking into account the mass of removed Group 1 and Group 2 material and the weight loss at 180°. 

LoI Summary Calculation

LoI % = (A x 100) / ((B x C / D) – E)

Where:

• A is the loss on ignition at 440°
• B is 20 (the weight of the 20g sub-sample)
• C is 200 (the weight of the 200g sample)
• D is the weight of the sample after removal of the >20 mm Gp1 and Gp2 material
• E is the weight loss after drying the 20g sub-sample at 180°

Where a LoI result is 10% or less, you must keep a record of the test result.

9. What if a Tested Sample Is Above the LoI Threshold?

You must complete all of the following actions if a sample is above the LoI threshold:

1. You must declare the quantity of fines to Revenue Scotland on your SLfT return and pay tax on it at the standard rate of Scottish Landfill Tax.
2. You must review all of the pre-acceptance checks completed for that particular waste stream for the waste producer. [s.5]
3. You must increase the frequency of testing of subsequent loads of the waste stream in reference to the frequency of testing table [s.12]
4. You must notify Revenue Scotland of the test result, providing all the requested details on the Loss on Ignition Test Result Form. [s.10]

10. Loss on Ignition Test Result Form

A Loss on Ignition Test Result Form must be completed each time a sample gives a loss on ignition test result of over 10%.

You must submit all such completed forms with the SLfT return for the period in which the test(s) took place and no later than 44 days after the end of the quarterly accounting period in which the test took place.

Loss of Ignition Test Result Form.pdf

11. Can a sample be retested that is above the LoI threshold?

If the prescribed test is conducted and the result is above the LoI threshold, you may conduct a single retest provided the following conditions are met:

1. The original prepared sample of fines must be retested.
2. The first LoI result must not exceed 10.5%
3. The prescribed retest must take place within 21 days of the first LoI result.

In such circumstances, if the retest result is within the LoI threshold, you may treat this as the test result for determining liability to SLfT.

12. Frequency of Testing

From 1 October 2016, you must conduct the prescribed LoI test for each waste stream consisting of qualifying fines at your landfill site. If a waste producer disposes of more than one qualifying fines waste stream at your landfill site, the test should be completed in respect of each separate stream of fines. These requirements apply equally for fines derived from waste already at your site.

12.1 First Test

From 1 October 2016, you must complete the first test during the period of when the first 500 tonnes of their fines is disposed of to your landfill site or within the first month, whichever is reached first.

12. 2 Subsequent Tests

After you have completed the first LoI test the frequency of testing that will apply will vary depending on the particular waste stream. You can determine the frequency of testing that will apply using the risk indicators in the Frequency of Testing table below. A waste stream will be identified as low, medium or high-risk by the risk indicators present.

If you have indicators that fall in more than one risk category, you should adopt the highest risk rating indicated. For example, if both the pre-acceptance checks and visual inspection indicates low-risk, but 1 of the last 20 LOI tests have failed, the medium-risk classification would apply. If a subsequent LOI test was failed so that more than one in the last 20 tests were failed, the high-risk classification would apply, irrespective of the other indicators.

If the high-risk classification applies, the standard rate of SLfT will apply to each load that fails. If the medium-risk classification applies, then, on the assumption that all the other requirements in the flow chart are met, the standard rate of SLfT will only apply to the one load that has failed. The lower rate will apply to the other loads until such time that another test is failed, at which point the higher rate will again apply to that individual load that failed and each subsequent load will be tested to determine the rate of SLfT as indicated by the high-risk frequency of testing.

It is possible to go straight from a high-risk classification to a low-risk classification if all the low-risk indicators are met.

12.4 Tests outside the requirements of the Frequency of Testing Table

You may conduct a test at times outside the prescribed frequency described in the Frequency of Testing table. In the event that you conduct a LoI test outside of the prescribed frequency, the timing of the next prescribed test will be determined by that test.

13. Power to direct a test

Where we consider it necessary for the protection of the revenue against mistake or fraud, we can direct that a representative sample of fines is taken and sent for testing at your cost. We may also collect a sample of untested material from the waste stream and arrange for this to be tested. In such circumstances, the results of that test may be used to determine the liability of Scottish landfill tax. In cases of doubt, for example when there is insufficient material provided to carry out a test, tax will be charged at the standard rate for each load of fines.

Waste soil

Note: From 1 October 2015, under this direction made under section 14 of the LT(S)A 2014, we will require you to use the flowchart in this section in order to determine whether a load consisting of waste soils only, is chargeable at the standard or lower rate of SLfT when disposed of to landfill.

General Guidance for Soil

For the purposes of SLfT, soil is a qualifying material if it wholly consists of naturally occurring sub-soil as listed in Group 1 of the Schedule notes to The Scottish Landfill Tax (Qualifying Material) Order 2016.

In practice, even virgin sub-soil is likely to be found to contain other materials when subjected to testing and unless these are also listed as qualifying materials and the criteria set out in the Order are met, the whole load will be subject to the standard rate of tax when disposed of to landfill.

The only exception to this is where the amount of non-qualifying material contained in the soil is small and, in line with the direction issued as part of this guidance, the whole load may be charged at the lower rate of tax. This section of guidance explains the process we will expect you to follow from 1 October 2015 to determine the correct rate of tax chargeable on such loads.

WM3:

As part of their duty of care, waste producers must classify the waste that their business produces and WM3 is the current UK standard that they must use. (See: Technical Guidance WM3: Guidance on the Classification and assessment of waste.)

In order for lower rate SLfT to apply to the load of soil, it must not be classed as hazardous waste under WM3. The person disposing of the waste should be asked to provide evidence of the non-hazardous classification of the load under WM3. You should review the evidence provided and be satisfied that it appears to be a true and accurate assessment. You must retain a copy of this evidence  and make it available to us if we ask to see it to support the rate of SLfT declared in your tax return.

Flowchart for determining the rate of SLfT chargeable per load of waste soil. (Applies from 1 October 2015)

Draft Soils Diagram PDF

SLfT2007 - Calculating the weight of waste

As SLfT is calculated on the basis of the weight of material being disposed, stringent methodologies for weighing must be adopted to ensure consistency, openness and fairness.

Guidance on:

• the requirement to use a weigh-bridge is provided in SLfT2008;
• asking us to agree to an alternative method of weighing waste is provided in SLfT2009; and
• the circumstances under which the water content of waste can be discounted are provided in SLfT2010.

SLfT2008 - Requirement to use a weighbridge to weigh waste

Sites with a working weighbridge

The basic method of calculating the weight of waste is by weighing it at the landfill site immediately prior to the time of disposal. If there is a working weighbridge at your landfill site, you must use it to weigh waste immediately prior to disposal.

Any weighbridges should be calibrated (in accordance with weights and measures legislation – see The Weights and Measures Act 1985) and maintained regularly to minimise breakdowns.
 
If you do not have a working weighbridge on your site, then one which is within close enough proximity (so as not to incur unreasonable extra cost) must be used instead (see below).

In exceptional circumstances you can ask us to agree an alternative method of calculating the weight - see SLfT2009.

Sites nearby with a working weighbridge

Where a working weighbridge on a nearby site is used, you must:

• notify us where your waste is being weighed by writing to us at the contact email address on our website; and
• keep a clear audit trail of this activity, including:
  • a record of weights for each vehicle or container. Where vehicles go directly to the landfill site after being weighed, and the waste is not interfered with between weighing and disposal, this weight can be used to calculate your SLfT liability; and
  • a record of all waste brought onto your site(s), showing where the waste was weighed, the identifying number and type of vehicle/container, a description of the waste, and the date and time disposed at your site. You must also record and retain the weighbridge tickets.

LT(S)A 2014 section 15

Regulation 36A of The Scottish Landfill Tax (Administration) Regulations 2015

Penalty for failing to comply with weighbridge requirements

You may be liable to a penalty if you fail to weigh material in accordance with the weighbridge requirements above (unless you have our agreement to use an alternative method of weighing waste) - see RSTP3021.

Regulation 39 of The Scottish Landfill Tax (Administration) Regulations 2015

SLfT2009 - Alternative methods of weighing waste

You can ask us to agree an alternative method of calculating the weight of waste disposed of to landfill by following the separate guidance on our Alternative Weighing Methods section of our website, if:

• in our opinion you would incur unreasonable cost by using an available weighbridge on your site or one within close enough proximity; or
• your weighbridge or another weighbridge within close enough proximity has broken down and, in our opinion, you would incur unreasonable cost by using any other weighbridge.

We will only agree to an alternative method of weighing waste if we are satisfied that either of the above conditions are met and that the alternative method will produce a fair and reasonable calculation of weight.  Once satisfied, we will agree in writing and state how long the agreement will run for.

You must notify us about any changes to your business practices which will affect the reliability of this method.

You must also notify (and then agree with) us if you wish to change from one agreed alternative method to another alternative method of weighing the waste. On occasions we may wish to have an independent check (for example, by test weighing loads) on the accuracy of the method used.

Penalty for failing to comply with weighbridge requirements

You may be liable to a penalty if you fail to weigh material in accordance with the alternative method of weighing waste that we have agreed with you - see RSTP3021.

Regulation 39 of The Scottish Landfill Tax (Administration) Regulations 2015

SLfT2010 - Discounting for water content

In certain circumstances, we can authorise a landfill operator to discount the water content of waste (but only where it is not present naturally) when calculating the taxable weight of the waste.

Naturally occurring water is any water that is present in the waste at the time of disposal that has not been added to the waste (or arisen) in any of the circumstances where a water discount applies described in the table below.

We would normally expect the waste producer to provide evidence to us of the amount of water that has been added to (or arisen in) the waste and remains in the waste at the time of disposal. The waste producer must nominate the sites that are to receive their waste and obtain the written agreement of the relevant site operators to apply the water discount. If we agree that a water discount may be applied we will write to the nominated sites informing them of the discount scheme and authorising them to apply the discount.

The circumstances under which a waste producer can and cannot apply for the water content of their waste product(s) to be discounted for SLfT purposes are set out in the table below.

The Scottish Landfill Tax (Administration) Regulations 2015 regulation 38(5)-(9)

Guidance for both waste producers and landfill operators on how to make an application for a water discount agreement is available in the water discount section of our website.

Penalty for failing to comply with authorisation or agreement to discount water content

You may be liable to a penalty if there is a failure to weigh material in accordance with any authorisation to discount water content you have with us or any agreement a waste producer has with us - see RSTP3021.

Regulation 39 of The Scottish Landfill Tax (Administration) Regulations 2015