Waste management company wins £1.6m landfill tax refund

Leading waste management specialist Augean is set to receive a £1.6m repayment of landfill tax, the first such payment in its lengthy legal battle with HMRC over a total of £40.4m of disputed assessments

The amount relates to a single biomass customer and is part of the assessments which the group paid in full in December 2019.

Augean has indicated it intends to seek interest and costs from HMRC in addition to the repayment, which will be treated as an exceptional profit in the group results for the year ending 31 December 2020.

The operator said it awaits the decision of another more significant element worth approximately £16m of the disputed landfill tax from the First Tier Tribunal (FTT) which was heard in September 2020.

Jim Meredith, executive chairman of Augean, said: ‘The group is pleased to have received notification of HMRC's repayment.

‘Nonetheless it is disappointing that the process with regard to this small element of the overall claim has taken more than three years to reach the right outcome.

‘Based on legal advice received, we continue to maintain our position that we have correctly collected and paid the appropriate landfill tax throughout, and we will continue to robustly challenge the disputed remaining assessments that have been paid in full through the tax tribunal system.’

Augean’s challenge relates to engineering materials used as part of its landfills cell construction, which are colloquially referred to as the 'fluff layer’, with claims dating back to August 2013.

Further reading:

Augean seeks £11m landfill tax repayment

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