Understanding waste bills
Each contractor will prepare its bills in a different way. However, there are a number of common elements which will allow you to understand how you are charged for waste collection.
Bin / Skip rental
Most waste and recycling bills will include a line detailing the cost of bin hire
- Almost all waste contractors will provide you with a receptacle for waste, at a suitable size for your premises and the amount of waste you create.
- You will be charged at a different rate depending on the size of bin/skip (this will be listed on the bill (1100L, 660L, 240L etc).
- Some companies will charge on a daily rate, some a weekly rate, some a monthly rate, and some annually. Make sure you understand how rental is being charged to ensure you are being charged an appropriate rate.
Collection / Disposal charge
On most waste bills this will be the highest cost.
In most cases this charge will simply be expressed as 'Collection / Disposal charge. However in practice this charge covers a number of things:
- the cost of collecting the waste from your site (staff pay, vehicle fuel, maintenance etc)
- the cost of disposing of the waste in a landfill site
- an appropriate proportion of the landfill tax [LINK] to the amount of waste you produce
- the waste company's profit margin
For recycling contracts this charge should always be lower than the charge for the same size receptacle of landfill waste. This is because the company will not have the costs of landfill (in most cases recyclable material will be sold on by the company for a profit) and the landfill tax does not apply.
Duty of care administration charge
Many waste companies add a separate line on waste bills to cover the cost of legal compliance in the collection of your waste. This charge implies that they will cover all paperwork for the transfer of waste from you to them. However, you should ensure that this is the case before committing to any contract.
All elements of a waste bill can have VAT applied to them. You should ensure that VAT is charged at the correct rate.
Information for sack collections
If your waste or recycling is collected in sacks, you will likely only receive a bill which shows the number of sacks purchased, a delivery cost and the total charge. The cost of purchasing sacks normally include the cost of collection, the cost of disposal and the duty of care administration charge.