UK households hit with new HMRC rubbish tax rise from April

UK households are being urged to check any quotes they get for work on their house after an HMRC tax rise on rubbish disposal was announced in the Budget.

Taking effect from April 2027, HMRC will increase the rate of tax for materials like bricks and concrete being sent to landfill, which will have a knock-on effect on the cost of property renovations, extensions and refurbishments.

Rainbow Rubbish Removals has explained the Budget change and the questions to ask before booking building waste collections.

It says that homeowners planning renovations are being urged to check their waste disposal quotes after the Budget announced a rise of almost 69% in the lower rate of Landfill Tax from next April.

The rate, which can apply to qualifying materials such as bricks and concrete sent to landfill, is set to increase from £8.65 to £14.60 per tonne on 1 April 2027. The change covers England and Northern Ireland and will be introduced through the Finance Bill 2026-27.

Miroslav Radov, founder of Rainbow Rubbish Removals, says households arranging kitchen rip-outs, garden renovations or other building work should establish how their waste will be handled and whether quotes cover collections taking place after the tax change.

The increase adds £5.95 in tax for each tonne of qualifying waste sent to landfill. For an illustrative five-tonne load, that means £29.75 more in tax. The effect on a customer’s bill will depend on the waste, its destination and the collection agreement.

Miroslav Radov said: “When you are budgeting for a renovation, ask what happens to the waste as well as what it costs to remove. Find out which materials can be kept separate for reuse or recycling, and what the quote includes if the collection takes place next spring.

“The 69% figure applies to the lower tax rate. It does not mean your clearance bill should rise by 69%. Labour, transport, the amount and type of waste, and how it is processed all contribute to the price.”

Rainbow is encouraging households to discuss waste separation before work begins, rather than once rubble, timber and packaging have been put together.

HMRC guidance says a disposal containing both lower-rated and standard-rated materials normally attracts the standard rate on the whole load. There is a limited exception for a small, incidental amount of standard-rated material, subject to the relevant conditions and evidence.

Radov added: “Speak to the builder or waste collector before filling a skip or piling everything in one place. Ask whether bricks and concrete can be collected separately and sent for recycling. The right arrangement will depend on the job, but it is much easier to plan at the start.”

He advises homeowners to get written confirmation of what a quote covers, including loading, transport, disposal, VAT and any restrictions on weight or materials. For work scheduled after 1 April 2027, customers should ask how long the quote remains valid and whether any price adjustment is allowed.

“If a price changes, ask for the reason and the amount in pounds,” Radov added. “A clear explanation should tell you how the change affects your particular collection.”