Wrong Landfill Tax reference may divert payment to another bill

Landfill Tax payers who use the wrong payment reference face a newly stated consequence: HMRC's Pay Landfill Tax guide now warns that the payment may be delayed or used to pay a different tax bill owedGOV. Where the money has already been applied to the wrong bill, the guide adds an explicit remedy — contact Landfill Tax enquiries to ask for the payment to be movedGOV. The previous wording mentioned only a delay in allocating the payment correctlyGOV, so the change both widens the stated risk and gives affected payers a way to fix it.

The reference at issue is the 15-character payment reference number starting with X, found on the Landfill Tax return. Because the reference links the money to the liability — cheques must carry it written on the back — an error can now leave the funds sitting against another outstanding HMRC debt while the Landfill Tax account shows a shortfall. Any business that spots a misreference should therefore check where the money landed and ask for it to be moved promptly; while the Landfill Tax account still shows a shortfall past the deadline, a penalty, interest or both may apply.

The surrounding payment discipline is unchanged. The return and any tax due must be submitted by the deadline — usually the last working day of the month, excluding weekends and public holidays, following the end of the return period, unless the business uses non-standard accounting periodsGOV. Where the deadline falls on a weekend or bank holiday, payment must reach HMRC by the end of the previous working dayGOV; late payment can attract a penalty, interest or both.

Four payment routes remain available. Online payment through the bank-account approval route is usually instant but can take up to two hours to appear. Direct Debit requires a posted EEITT15 instruction form and around ten working days to set up, and cannot be used for payments above £20 million. Bank transfers use sort code — 08 32 00, account number — 11963198 and account name — HMRC Landfill Tax, or from overseas account number (IBAN) — GB73 BARC 2005 1760 3873 98 with Business Identifier Code (BIC) — BARCGB22; all payments must be in pound sterling, and arrive the same or next working day by CHAPS or Faster Payments or within three working days by Bacs. Make cheques payable to 'HM Revenue and Customs only' with the reference number written on the back, and send them to HM Revenue and Customs, Direct, BX5 5BD, United Kingdom. A return must still be submitted even where nothing is due or a repayment is expected.

Legal basis: HMRC guide Pay Landfill Tax; Aggregates Levy is covered by a separate guide.