This guidance reflects provisions in Part 4 and Part 5 of the Landfill Disposals Tax (Wales) Act 2017 (LDTA).
The 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.
LDTA/3100 Duty to register for landfill disposals tax
Landfill site operators who are carrying out taxable disposals from 1 April 2018 must register with the WRA.
Landfill site operators must submit an application to the WRA to be registered at least 14 days before taxable operations begin.
The registered person can be:
- an individual - the sole proprietor is liable for all their obligations and liabilities in relation to LDT;
- a partnership or unincorporated body - each partner or member is liable for all the obligations of the partnership or unincorporated body in relation to LDT (see LDTA/3180); and
- a body corporate - in certain circumstances outlined in (see LDTA/3160) below, associated companies can apply for group treatment.
The WRA will only register a person if it is satisfied that the application contains all of the information required. Once the application has been reviewed by the WRA, it will issue a notice to the person of its decision. If the WRA registers the person, the notice will also set out the person’s entry in the register (see LDTA/3110). As part of the registration, the WRA will issue a unique registration number and provide details to the online tax return form.
LDTA/3110 Register of persons who carry out taxable operations
To enable the WRA to effectively collect and manage LDT, it is important that it knows who the taxpayers are. The WRA must keep a register of those persons who operate authorised landfill sites at which taxable disposals are made. A person’s entry in the register must, as a minimum, contain the information that is contained in Schedule 2 to LDTA. The WRA may request additional information.
Schedule 2 to LDTA is broken down into four sections. Section 1 outlines the general information required for all landfill sites registering for LDT and includes:
- The person’s name;
- Any trading name used by the person;
- A statement of whether the registered person is: a body corporate, an individual, a partnership or an unincorporated body;
- The person’s business address;
- The address or description of each authorised landfill site of which the person is the operator;
- The registration number assigned to the person by the WRA.
Section 2 outlines the additional information required if the person is registering as a corporate group (see LDTA/3160) and includes:
- A statement by the person specifying that they are the representative member of a group;
- The name and address of every other group member;
- The address or description of each authorised landfill site of which any member of the group is an operator;
- 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 and states:
The name and address of each of the members in the partnership or unincorporated body must be included in the register.
Section 4 further defines what is meant by the address in relation to partnerships and unincorporated bodies and states that the address should be the registered or principle office.
A register of authorised landfill site operators is published on the WRA website. The register contains the following information: WRA Registration number, organisation name and business address, landfill site address(es) and link to Companies House details.
LDTA/3120 Changes and corrections of information
It is important for the register to remain accurate and reflect the most up-to-date information available regarding landfill sites. A registered person or a person, who has applied for registration, must give notice to the WRA of any changes or inaccuracies in the information they have provided. The WRA must be notified within 30 days of the change taking place. The WRA also has the ability to correct any inaccuracies in the register, but must notify the person of the changes made.
LDTA/3130 Cancellation of registration
A registered person who ceases to carry out taxable operations, must apply to the WRA for the cancellation of their registration no later than 30 days after taxable operations end. Registration will only be cancelled once all taxable operations have ended, including site restoration (see LDTA/4000) and all of the tax that the person is required to pay has been paid.
The WRA may also cancel a person`s registration if it is satisfied that the person has not carried out taxable operations and does not intend to do so. If the WRA cancels a person`s registration, it must issue a notice of the cancellation to the person.
LDTA/3140 Penalties relating to registration
The WRA may apply a penalty of up to £300 if a person carries out taxable operations without being registered.
Where a person continues to carry out taxable operations without being registered after the end of ten days beginning with the day on which the notice of the registration penalty is issued, that person will be liable to a further penalty or penalties not exceeding £60 for each day they continue to do so.
Should the person carry out taxable activities without registering with the WRA or filing LDT returns, they may also be liable to a penalty or penalties for failure to make a tax return or pay tax.
If the person who carries out taxable operations without being registered can provide a reasonable excuse for the breach and the WRA or (on appeal) the tribunal is satisfied with this, that person will not be liable to a penalty.
The WRA may also apply a penalty of up to £300 if a person fails to comply with any of the registration requirements. This includes failure to report any changes or inaccuracies and failure to cancel registration.
Where the WRA assesses a penalty in relation to registration, it must issue a notice to the landfill site operator of the penalty assessed.
LDTA/3150 Designation of corporate groups
As part of the registration process, companies (or bodies corporate) can apply to the WRA 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.
If a landfill site operator wishes to apply for group treatment, they must nominate one of the members of the group to act as the “representative member”. The application must be made in writing to the WRA. 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 the WRA, 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, i.e. 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.
The WRA has the right to refuse a group application, but must issue a notice of its decision to the body or bodies that made the application.
LDTA/3160 Variation of cancellation of designation of corporate groups
Once the group registration is in place changes can be made to either group membership (adding or removing a member) or changing the representative member. The WRA also has the power to cancel a group registration. The WRA can vary or cancel a group registration on its own initiative or following an application by the representative member. An application to vary a group registration may also be made by any member of the group where that application relates to that member wishing to be removed from the group registration.
The WRA must issue a notice of its decision to each member of the group (including those being added or removed from the group). Where it gives approval it must set out the details of the variation or cancellation and specify the date on which it will take effect.
The WRA must vary or cancel the group registration if it is satisfied that the conditions for registration are no longer met and it is satisfied that the application is made with the agreement of each and every member of the group.
LDTA/3170 Reviews and appeals relating to registration and designation of corporate groups
All WRA decisions relating to the registration of a person can be reviewed or appealed.
LDTA/3180 Registration of partnerships and unincorporated bodies and changes in membership
As part of the registration process, two or more persons carrying on a landfill business in partnership or as an unincorporated body can apply to the WRA to register as a partnership. They may register in their own names or in 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.
The WRA 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 the WRA is notified otherwise.
LDTA/3190 Duties and liabilities of partnerships and unincorporated bodies
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 TCMA, 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 is 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 is 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 is no such office or committee, every member.
LDTA/3200 Death, incapacity or insolvency of a landfill site operator
Where a person (B) who carries on a landfill business dies, becomes incapacitated or becomes subject to insolvency procedures such as going into liquidation, bankruptcy or administration, a third party (A) may take over the running of that landfill site. A must notify the WRA of the date of this change of circumstances and the reasons for the change within 30 days of taking over the landfill business.
The WRA may treat A as if it were the registered landfill site operator. If the WRA does so, it must notify both A and (if appropriate) B of that position. Where the WRA treats A as if it were the registered landfill site operator, there is no need for A to register as landfill site owner with the WRA.
Where A ceases to carry on the landfill business, or where B ceases to be incapacitated or subject to insolvency procedures, A must notify the WRA of that change within 30 days.
LDTA/3210 Adjustment of contracts
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.