Landfill Disposals Tax weighing methods and water discount: technical guidance

Calculating the taxable weight of material and applications for water discounts in Wales differs from other parts of the UK. This guidance reflects provisions in part 3 and part 5 of the Landfill Disposals Tax (Wales) Act 2017. 

It provides an overview of calculating the taxable weight of material, including: 

• using weighbridges
• alternative weighing methods
• water discounts

It also provides information on potential penalties for: 

• not determining taxable weight properly
• failure to register for Landfill Disposals Tax (LDT)
• applying a water discount incorrectly

LDT is calculated based on the weight of material being disposed of. You must weigh all material carefully to make sure the correct tax amount is paid.

You’re responsible for calculating the material’s taxable weight to determine the amount of tax chargeable. 

You must use a weighbridge to determine the weight of the material being disposed of in tonnes. Usually as the material enters the landfill site.

It’s not acceptable: 

• for material to bypass the weighbridge
• to use an alternative weighing method (LDTA/3070)

unless we approve it in advance by us at the Welsh Revenue Authority (WRA).

You need to ensure the weighbridge is calibrated and maintained regularly, gives an accurate measurement, and minimise the risk of breakdowns. The weighbridge must meet the requirements in The Weights and Measures Act 1985.

We recognise that you may be unable to use a weighbridge in some circumstances. For example, if your landfill site has no weighbridge or it’s temporarily broken.

You can apply for agreement to use an alternative weighing method to determine the weight of the material in a taxable disposal. We must approve it before it can be used.

We’ll only agree to an alternative method of weighing waste if we’re satisfied that it will give a fair and reasonable calculation of the weight of material. For more information, refer to alternative weighing methods (LDTA/3070).

Weighbridge breakdown outside WRA opening hours

We understand landfill sites operate outside our opening hours, and weighbridge breakdowns may occur during this time.

We encourage you to apply for an alternative weighing method approval in advance to allow the landfill site to continue to operate.

To receive a discount for water present in material, you must apply for a water discount approval with us. This differs from how landfill taxes work elsewhere in the UK.

If you wish to apply for a water discount, contact us as soon as possible. We do not backdate approvals.

You’ll be required to claim the water discount in your tax return and provide details of the overall weight of the waste material for each water discount approval in the accounting period. 

As the taxpayer of LDT, you’re accountable for the water discount and must have the proper contracts and processes in place with your customers (waste producers).

You must have all the documentation and evidence to apply for a water discount approval.

Necessary use or additions of water

Water discounts are only approved where adding or using water is necessary.

If a waste producer stores the waste material outside before disposal, any added water in the material due to rain or snow must not form part of the water discount.

We’ll only consider applications where water is necessary for the following: 

• where it had to be added: 
• to enable the material to be transported for disposal
• to extract a mineral
• during an industrial process
• where it arose as a necessary consequence of an industrial process
• the material is a residue from the treatment of effluent or sewage at a water treatment works

Application process 

Once we’ve received your completed application and supporting documentation, we’ll consider it and may seek advice from relevant partners, such as Natural Resources Wales. We may ask to visit the waste producer.

Evidence required to support the application

You must provide: 

• your organisation name
• your LDT Registration Number (if known)
• NRW (Natural Resources Wales) permit number
• name and address of the landfill site applying for the water discount
• name and address of your customer or the waste producer (if different from the customer)
• their Environment Agency / NRW permit number 
• EWC (European Waste Code) and description of waste material and how it was produced
• details of the water content, including the moisture percentage present in the waste
• estimate of the weight of the material sent to the site annually
• details of any treatment that the waste undergoes whilst with the waste producer to reduce its water content
• the weight or volume of waste material at the start of the process
• how the waste is sorted before and after treatment and before site removal
• confirmation no water is present in the material because of rain or snow
• details of the UKAS (United Kingdom Accreditation Service) accredited laboratory undertaking testing
• details and records of sampling undertaken
• details of the sampling frequency and methodology

After you submit your application 

We’ll let you know our decision in writing. If you disagree, you can: 

• ask us to review it, or
• appeal straight to the independent tax tribunal

You need to do this within 30 days from the date we issue our decision letter.

If you request a review of our decision, you cannot appeal to the tribunal until our review is complete.

If your application is approved

Our approval will set out the details, including any conditions and how long it will last. We may vary or revoke an approval at any time in writing.

You must keep a water discount record noting each taxable disposal for which a discount is applied.

If you give any discount to a waste producer before we’ve approved it, the discount will not apply. You’ll be liable to pay full tax on the total weight of the disposal.

Approval conditions

Water discount approvals are subject to specific conditions set out in the approval notice. Each approval may have different conditions. These can be varied during the lifetime of an approval.

You’re responsible for complying with the conditions, including any based on information supplied by the waste producer.

Your approval conditions may consist of the following. This list is not exhaustive.

You must:

• provide evidence of external analysis of the water content present in the material being disposed of from a UKAS accredited laboratory
• send copies of the above analysis to WRA on request
• inform us if there are any planned changes in the waste treatment process, equipment or production methods that could affect the water discount
• inform us of any changes to the composition of the waste stream
• tell us if you or the waste producer are considering changing the UKAS accredited laboratory that conducts the analysis
• report any changes within 30 days of identifying or being informed of the changes

Your approval will be reviewed at the frequency stated in your approval notice. This may be yearly, quarterly, or monthly. We’ll send you a form when the review is due.

If you do not comply with the conditions of a water discount approval, you may need to pay back any tax loss and/or a penalty. Refer to LDTA/3060 penalty for applying water discount incorrectly (LDTA/3060).

There are occasions where we consider it appropriate to calculate the taxable weight of material in a disposal in the following circumstances:

• you’ve not made a tax return related to the disposal
• you’ve failed to determine the weight using a weighbridge or an approved alternative weighing method
• you’ve breached a condition of your water discount approval
• you do not have a water discount record

If we need to calculate the weight of the material, we can disregard or reduce a water discount.

As well as potential liability to further LDT, if you do not properly determine the weight of material in a disposal, we may impose a penalty if you do not use a weighbridge or an approved alternative weighing method.

The penalty can be up to £500 for each taxable disposal. We’ll issue a notice telling you the penalty we’ve applied.

You may also be liable to further penalties under the Tax Collection and Management (Wales) Act (TCMA) 2016, such as penalties for inaccuracies in tax returns and failure to pay tax.

As well as potential liability to further LDT, we may impose a penalty if you:

• apply a discount without our approval
• apply a discount more than the discount we’ve approved
• breach one or more of your approval conditions

The penalty may be up to £500 for each taxable disposal, and we’ll issue a notice telling you the penalty we’ve applied.

You may also be liable to further penalties under the TCMA (Wales) Act 2016, such as penalties for inaccuracies in tax returns and failure to pay tax.

We may reduce the penalty based on the circumstances and how much you co-operate. The more you tell us, help us, and give us, the greater the reduction in the penalty.

More information can be found in Tax Collection and Management (Wales) Act 2016 penalties: technical guidance.

You can apply to the WRA for approval to use an alternative weighing method. We must approve it before use.

We’ll only agree to it if we’re satisfied that the alternative method will produce a fair and reasonable calculation of the weight of material.

When you apply with supporting documentation, we’ll review it and may seek advice from related partners such as Natural Resources Wales.

We’ll let you know our decision in writing. If we approve your application, we’ll send you an approval notice setting out the details, including any conditions and how long it will last.

The approval may relate to all the taxable disposals based on the application or to specific types of waste, such as certain waste streams.

Where an alternative weighing method has been approved, you must use it in line with the approval. We may check the accuracy of the method used, for example, by testing loads during an inspection.

You must tell us of any changes to business practices which will affect the method’s reliability. We may vary or revoke an approval at any time in writing.

If you disagree with our decision, you can:

• ask us to review it, or
• appeal straight to the independent tax tribunal

You need to ask us to review it within 30 days from the date we issue our tax decision letter.

If you request a review of our decision, you can only appeal to the tribunal once our review is complete. You’ll then have another 30 days from the day we issue our review decision letter to appeal to the tribunal.

Examples of alternative weighing methods (not exhaustive)

Specified method 1: maximum permitted weight of container

Method description

This method involves recording the maximum weight that a vehicle or container (such as a lorry, skip, rail wagon, and so on) is permitted to carry and applying the appropriate rate of tax.

Maximum weights

You can use either the maximum plated weight the vehicle can carry, or the weights specified in the tables below.

You should use the gross plated weight of the vehicle or container less its tare weight.

Any vehicles that are partially filled must be treated as full for tax calculation purposes.

If a crane or bucket is fitted to a vehicle, the maximum weight that can be carried is reduced by 2 tonnes.

Records to keep

To operate this method, you must record all waste brought onto your site, showing: 

• identifying number and type of vehicle or container
• description of the waste carried
• date the waste was disposed of at your site

You must also set up an audit trail or register which records the following, for each vehicle or container using your site for waste disposal: 

• gross weight
• net tare weight
• maximum carrying weight

Specified method 2: volume to weight conversion

Method description

To operate this method, you’ll need to know the cubic capacity of the vehicles (lorry, skip, rail wagon, barge, and so on) that deliver waste to your site. These should be used with the categories of waste and the conversion factors set out below.

To comply with weights and measures legislation, the maximum cubic capacity of the container must be a multiple of 0.1 cubic metres. Measurement can only go to one decimal place.

If the calculation results in a tonnage greater than the vehicle’s legal carrying capacity, it’s to your benefit to use the maximum permitted weight of the container method (Specified method 1).

Your tax calculations must be based on all containers and vehicles being full.

Conversion factors

If the waste falls into more than one category, the higher conversion factor applies to all the waste.

What records to keep

You must record all waste brought onto your site, showing the identifying number and type of vehicle/container, a description of the waste carried, and the date disposed at your site. The volume of the vehicle/container must be recorded and evidenced with whatever documentation is available from the haulier.

Specified method 3: weighing the waste before receipt at the site 

Method description

You may accept waste that’s weighed away from your landfill site. If there’s a clear audit trail including a record of weights for each vehicle, container, wagon, and so on - and they go directly to the site, then this scheme can be used to calculate Landfill Disposals Tax.

Records to keep

To operate this method, you must record all waste brought onto your site, showing: 

• where the waste was weighed
• identifying number and type of vehicle or container
• description of the waste
• date disposed at your site

You must also record and retain the weighbridge tickets.