This guidance reflects provisions in Part 4 and Part 5 of the Landfill Disposals Tax (Wales) Act 2017 (LDTA).
LDTA/5000 Accounting for tax
The approach to accounting for tax is broadly consistent with other parts of the UK. In drafting the legislation, the most appropriate elements have been updated, clarified or brought together.
This guidance reflects provisions in Part 3 and Chapter 4 of LDTA. It provides an overview of the duty on the operator of an authorised landfill site to make a tax return in respect of each accounting period. This guidance should be read in conjunction with Part 3 and Chapter 3 of TCMA.
LDTA/5010 Duty to make a tax return in respect of accounting for tax
Landfill site operators who are registered for LDT, must make an LDT tax return to the WRA in respect of each accounting period. The return must contain an assessment of the amount of tax chargeable on the operator and make a declaration that, to the best of their knowledge the information they have provided is correct and complete.
Tax returns must be submitted along with any payment of tax no later than the last working day of the month following that in which the accounting period ends (the ‘filing date’). For example, if an accounting period ends on the 30 June, a tax return must be submitted and payment of tax made by the last working day in July.
For registered landfill site operators, the first accounting period begins on the day they begin to carry out taxable operations and ends on the day notified to them by WRA. From then on, their accounting period will be each subsequent period of 3 months.
For landfill site operators that have not registered, the first accounting period begins on the day they begin to carry out taxable operations until the end of the calendar quarter in which the person begins to carry out taxable operations. For example, if taxable operations begin on the 3 April, the first accounting period will end on the 30 June. From then on, each accounting period will be every calendar quarter (i.e. a period of 3 months ending with 31 March, 30 June, 30 September or 31 December).
LDTA/5020 Power to vary accounting period or filing date
Registered landfill site operators can make an application to change their accounting period or filing date to align them with their business processes. The application must be made in writing to the WRA. The WRA must issue a notice of their decision to the registered landfill site operator who made the application.
WRA also has the power to amend the duration of an accounting period and the filing date for a tax return. Any such amendment is to be made by issuing a notice to a landfill site operator.
LDTA/5030 Tax chargeable in respect of accounting period
The tax chargeable on a disposal made at an authorised landfill site is chargeable to the accounting period in which the disposal is made. For example if a taxable disposal was made on the 1 March, it would be chargeable in the accounting period ending 31 March.
A landfill site operator may apply for an exception to apply in respect of an accounting period. An application for this arrangement must be made to the WRA and the application can apply to all disposals made at the landfill site or to a description of taxable disposals specified in the application. The exception does not apply to the disposal if the landfill site operator has given notice to the WRA, before the landfill invoice is issued, that they do not want to take advantage of this arrangement.
The landfill site operator may vary or withdraw the notice by giving further notice to the WRA.
The WRA must issue a notice to the landfill site operator of their decision on the application and if the WRA approves the application, the notice must specify the longer period and the taxable disposals in relation to which this longer period applies. The WRA must issue a further notice if any amendments to this arrangement are made.
The exception to this is where a landfill site operator issues a landfill invoice in respect of a disposal within 14 days of the disposal, beginning with the day the disposal is made; the tax then becomes chargeable in the accounting period the invoice was issued. This would mean the disposal is made in one accounting period and the invoice is issued in the next accounting period. If a landfill site operator is using calendar quarters as their accounting period an example of this would be if a taxable disposal is made on the 28 June and the landfill invoice is issued on the 1 July, the accounting period for that disposal will be the calendar quarter ending 30 September instead of 30 June.
LDTA/5040 Schedule 3 – Contents of a landfill invoice
This section defines a landfill invoice as an invoice issued in respect of a taxable disposal and which contains the information contained in Schedule 3.
Schedule 3 specifies that a landfill invoice must contain the following information:
- An identifying number (this number should be unique)
- The date on which the invoice is issued
- The name and address of the person issuing the invoice
- The registration number assigned to that person by WRA
- The name and address of the person to whom the invoice is issued
- The date on which the taxable disposal is made
- A description of the material in that taxable disposal
- The rate of tax chargeable on the material in the taxable disposal
- The taxable weight of the material in the taxable disposal
- Any discount applied under section 19 (3) of the LDT Act in respect of water present in the material
- Any relief claimed in relation to the taxable disposal
- The amount of tax chargeable on the taxable disposal
- The total amount of consideration payable in respect of the invoice.
See guidance on weighing and water discount and tax chargeable for further information.
Where a landfill invoice is issued in respect of more than one taxable disposal, it must show for each disposal the information specified in f) to l) above.
LDTA/5050 Payment of tax
The amount of tax stated in the tax return must be paid no later than the filing date.
Late filing of the return or late payment of the tax will make the landfill site operator liable to penalties.
If a landfill site operator amends the return, the tax must be paid either no later than the filing date (if the return is amended before the filing date) or when the person notifies WRA of the amendment (if amended after the filing date). TCMA guidance covers payment requirements where a return is amended in other circumstances (for example by WRA or during an enquiry).
LDTA/5060 Duty to maintain landfill disposals tax summary
Each landfill site operator must keep a summary of the amount of tax chargeable and the amount of tax paid in respect of each accounting period. WRA will specify to each landfill site operator the form of the summary and the information that must be in it. Failure to keep the summary will make a landfill site operator liable to penalties.
LDTA/5070 Postponement of recovery of tax
Where a landfill site operator asks WRA to review a decision, or appeals to the tax tribunal against a WRA decision, because it thinks that an excessive amount of tax has been charged, they may ask WRA to postpone the recovery of the tax (or a part of it). In making a postponement request, the landfill site operator must specify the relevant amount of tax; the reasons why they think the amount of tax charged is excessive; and why they think that the recovery of the tax would cause financial hardship.
WRA may grant a postponement request where it thinks that the landfill site operator has reasonable grounds for thinking that the amount is excessive and where it thinks that to recover the that amount would cause the landfill site operator financial hardship. This will need to be considered on a case-by-case basis, but may include circumstances where there is a genuine dispute between WRA and the landfill site operator (for example relating to the interpretation of the law) and where the payment of the tax in advance of settling that dispute could have a significant, detrimental financial impact on the running of the landfill site.
If WRA agrees to postpone the recovery of the tax, it may make that conditional on the landfill site operator providing adequate security.