Registration for Landfill Disposals Tax: technical guidance

Our approach to registration is broadly consistent with other parts of the UK. In drafting the legislation, the most appropriate elements have been updated, clarified or brought together.

A person or persons as described in the Landfill Disposals Tax (Wales) Act 2017 (LDTA) are known as a landfill site operator for the purposes of the WRA’s administration and collection of the tax, including registration.

Landfill site operators who are, or have the intention of, carrying out taxable disposals from 1 April 2018, must register for Landfill Disposals Tax (LDT).

Landfill site operators must submit an application to us to be registered at least 14 days before taxable operations begin.

For the purposes of registration and cancellation of registration we consider taxable operations and taxable disposals to mean the same.

A landfill site operator can be:

• an individual: the sole proprietor is liable for all their obligations and liabilities in relation to LDTA
• a partnership or unincorporated body: each partner or member is liable for all the obligations of the partnership or unincorporated body in relation to LDTA (see LDTA/3180); and,
• a body corporate: in certain circumstances outlined below (in LDTA/3160), associated companies can apply for group treatment

We will only register a landfill site operator if we’re satisfied that an application contains all of the information required. Once we’ve reviewed an application, we’ll issue a notice to the landfill site operator containing our decision.

If we grant registration we will notify the landfill site operator of their entry in the public register of landfill site operators, including providing them with their unique registration number and information about the online tax return.

To enable us to effectively administer and collect LDT, it’s important that we know who the taxpayers are. We must keep a public register of landfill site operators who operate authorised landfill sites at which taxable disposals are made in Wales.

A landfill site operator’s entry in the register must, as a minimum, contain the information that is set out in Schedule 2 LDTA.

The information in Section 1 of Schedule 2 outlines the general information required for all landfill sites registering for LDT in Wales and includes:

• the landfill site operator’s name;
• any trading name used by the landfill site operator;
• a statement of whether the landfill site operator is:
  • a body corporate
  • an individual
  • a partnership
  • an unincorporated body
• the landfill site operator’s business address
• the address or description of each authorised landfill site of which the landfill site operator operates
• the registration number assigned to the landfill site operator by us

Section 2 of the Schedule outlines the additional information required if the landfill site operator is registering as a corporate group and includes:

• a statement by the landfill site operator specifying that they are the representative member of a group
• the name and address of all group members
• the address or description of each authorised landfill site of which any member of the group operates
• the name and business address of any body corporate or individual who is not a member of the group but who (either alone or in partnership) controls all of its members

Section 3 outlines the additional information required for partnerships and unincorporated bodies including the name and address of each of the members in the partnership or unincorporated body that must be included in the public register.

Section 4 of the Schedule further defines what’s meant by the address in relation to partnerships and unincorporated bodies and states that the address should be the registered or principal office.

We may request additional information from a landfill site operator for registration purposes.

It is important for the public register of landfill site operators to remain accurate and reflect the most up-to-date information available regarding authorised landfill sites.

A registered landfill site operator must notify us (in writing or by email) of any changes to or corrections in the information published on the public register and information we hold in our records. For example, where a landfill site operator operates more than one landfill site and has ceased to make taxable disposals on a permanent basis at one site only, they must notify us so we can amend the public register and our records. A landfill site operator should notify us of any change or correction within 30 days of it taking place, or they could face a penalty of up to £300.

Where we become aware of an inaccuracy in the information on the public register or in our records, we can correct this ourselves and we’ll notify the landfill site operator of the correction we’ve made. If an operator has ceased taxable disposals at all its landfill sites and wishes to cancel their registration they should make a request for cancellation of registration (LDTA/3130).

A landfill site operator who ceases to carry out taxable disposals must make a request in writing or by email to cancel their registration no later than 30 days after taxable disposals have permanently ended. The 30-day period is calculated from whichever of the following comes later:

• when the landfill site operator has applied to vary their environmental disposal permit to a recovery permit, or
• when they take their last taxable disposal, including material for site restoration

We can agree a date to extend the deadline on which a landfill site operator needs to make a request to cancel registration. A request for extension should be made in writing or by email.

If a landfill site operator wishes to cancel their registration, they should contact their Customer Relationship Manager by email ldtmailbox@wra.gov.wales. They’ll advise on the process.

When making a request for cancellation of registration, a landfill site operator should submit the following information:

1. Their name and address.
2. The name and address of the landfill sites the operator is closing on a permanent basis.
3. The landfill site operators companies house registration number. 
4. The landfill site operators WRA registration number.
5. The landfill site operators environmental permit numbers.
6. Confirmation that the operator has ceased to take taxable disposals, including any site restoration material (LDTA/4000) and the date on which the last taxable disposal took place.
7. Any information or documentation relating to their application to Natural Resources Wales (NRW) to vary their environmental disposals permit to a recovery permit, including NRW’s final inspection report and any information on the current status of the application.

We will only cancel registration once all taxable disposals have ended, including disposal of site restoration material and all tax that is due has been paid. By tax we do not mean any penalties or interest.

We may make enquiries to check no further disposals are required specifically for site restoration and that no more tax is due. Whilst we carry these out, we’ll place an application for cancellation of registration on hold.

We may cancel a landfill site operator’s registration ourselves if we’re satisfied that they’ve not carried out taxable disposals and do not intend to do so.

When we decide that the requirements for cancellation of registration to be granted have been met, we’ll issue a notice confirming cancellation and remove the landfill site operator from the public register.

We may apply a penalty of up to £300 if a landfill site operator carries out taxable disposals without being registered.

If a landfill site operator continues to carry out taxable disposals without being registered after the end of 10 days (beginning with the day on which we issue a registration penalty notice), the landfill site operator will be liable to a further penalty or penalties not exceeding £60 for each day they continue to do so.

Should a landfill site operator carry out taxable disposals without registering with us and filing LDT returns, they may also be liable to a penalty or penalties for failure to make a tax return and pay tax.

If a landfill site operator who carries out taxable disposals without being registered can provide a reasonable excuse for the breach and we or (on appeal) a tax tribunal is satisfied with this, then that landfill site operator will not be liable to a penalty.

We may apply a penalty of up to £300 if a landfill site operator fails to comply with any of the registration requirements set out above. This includes:

• failure to report any changes or corrections (LDTA/3120) on the public register or in our records to us
• failure to submit a request to cancel registration (LDTA/3130) no later than 30 days after taxable disposals have ended on a permanent basis

When considering a penalty relating to cancellation of registration, we’ll look at the level of engagement we’ve had from a landfill site operator throughout the process. We use the ‘telling, helping and giving access’ principles when deciding if and how much we’ll reduce a penalty by. The more you tell us, help us, and give us, the greater the reduction in any penalty is likely to be.

Where we assess a penalty in relation to registration including cancellation, we will issue a notice to the landfill site operator setting out our reasons for our decision.

As part of the registration process, companies (or bodies corporate) can apply to register as a group. Group registration allows individual companies to account for LDT as part of a group, through one representative member.

The effect of a group membership is that the representative member of the group will be treated for the purposes of LDT, as the landfill site operator of each authorised landfill site operated by the members of the group.

The process and the requirements for a group to apply for registration (LDTA/3090) is the same as those for any other landfill site operator. However in addition they must nominate one of the members of the group to act as the ‘representative member’. An application for registration must be made in writing or by email.

All of the companies in the prospective group must be parties to the application but any one of those companies (or the person controlling them) can make the application.

If the application is accepted by us, the companies are to be treated as a group from the beginning of an accounting period and the company named in the application as the representative member will thereafter be treated as the representative member, in this case, the landfill site operator.

Once the application is accepted:

• any liability of a member of the group to pay tax, interest or penalties is to be taken to be a liability of the representative member
• the representative member is to be taken to carry out any taxable activities which a member of the group would carry out. All taxable disposals made between members of the group must be accounted for and any tax paid, and
• all members of the group will then be joint and severally liable for any tax, interest or penalties due from the representative member, but which remain unpaid after the relevant date

We have the right to refuse a group application, but if we do, we must issue a notice of our decision to the body or bodies that made the application.

Once a group is registered, changes can be made to either the group membership (adding or removing a member) or changing the representative member.

If we agree to amend a groups designation, we’ll issue a notice to all the group's members setting out, the details of the variation and when it takes effect. We’ll also update any relevant information on the public register of landfill site operators.

To cancel a groups registration, we have the power to cancel registration ourselves or on the request of the group. The process and the requirements for a group to cancel their registration (LDTA/3130) is the same as those for any other landfill site operator. However, for a group, in addition to the required information set out above, they should provide us with written confirmation of a request to cancel registration from each member of the group.

If a group wishes to vary their designation or cancel registration, they should contact their Customer Relationship Manager by email ldtmailbox@wra.gov.wales. They’ll advise on the process.

We will only cancel registration once all taxable disposals have ended, including disposal of site restoration material and all tax that is due has been paid. By tax we do not mean any penalties or interest.

When we decide that the requirements for cancellation of registration to be granted have been met, we’ll issue a notice to the group’s representative member, confirming cancellation and remove the group from the public register.

All of our decisions relating to the registration and cancellation of registration of landfill site operators can be reviewed or appealed if you disagree.

As part of the registration process, 2 or more persons carrying on a landfill business in partnership or as an unincorporated body can apply to register as a partnership. They may register in:

• their own names, or
• the name of the partnership or body

If the registration is completed in the name of the partnership or body and its membership changes, in order for the registration to remain valid at least one of the members must have been a member of the partnership or body before the change.

We must be informed of any changes to the membership of a partnership or unincorporated body and that person is treated as continuing to be a member of a partnership or body until we’re notified otherwise.

As a member of a partnership or unincorporated body, anything required or permitted to be done by or in relation to persons in a partnership or unincorporated body under LDTA or the Tax Collection and Management (Wales) Act 2016, must be done by or in relation to every person who is a partner in the partnership or managing member of the body at the time when it is done or required to be done. However, anything required or permitted to be done by every partner or managing member may instead be done by any one of them.

Any liability to pay tax, interest or penalties is the joint and several responsibility of every member of the partnership or unincorporated body at the time it is due. Where a person carrying on a landfill business in partnership or as an unincorporated body is only a member for part of an accounting period, that person’s personal liability for tax chargeable must be calculated on the basis of a just and reasonable apportionment.

If an unincorporated body (other than a partnership) is required to do anything in relation to LDT, it’s the joint and several responsibility of any of the following persons to comply with the requirement:

• every member holding office as president, chair, treasurer, secretary or any similar office
• if there’s no such office: every member holding office as a member of a committee by which the affairs of the body are managed, or
• if there’s no such office or committee: every member

A third party may take over the running of a landfill site where one of the following happens to a person who carries on a landfill business, if:

• they die
• become incapacitated
• become subject to insolvency procedures, such as liquidation, bankruptcy and administration

A third party must notify us of the date of the change in circumstances and the reasons for the change within 30 days of taking over the landfill business.

Where there is a change in the tax rate applicable to a taxable disposal at an authorised landfill site, a contract relating to that disposal that refers to the previous tax rate, is automatically adjusted so as to be understood to refer to the new tax rate. This automatic adjustment can be avoided by an explicit agreement between the parties to that effect.