Cardiff Council Agrees to £16M Tax Settlement

Cardiff Council has reached an agreement with HM Revenue and Customs (HMRC) to settle a landfill tax dispute, agreeing to pay over £12 million, which could rise to £16 million with interest. The dispute, stemming from a 2017 HMRC audit, involved allegations that several companies, including Neal Soils owned by David Neal, were taxed at lower rates than required for soil and materials delivered to the now-closed Lamby Way landfill site. Initial liabilities were as high as £45 million, which were negotiated down through discussions over the complexities of landfill tax rules that changed in 2015. Council officials stress there was no wrongdoing but a misunderstanding regarding the categorization of materials. The financial impact of this settlement has raised concerns among council members, prompting calls for a thorough review of the situation. This case has highlighted wider issues surrounding landfill tax assessments faced by various operators and public bodies in the UK.