The Landfill Communities Fund (LCF) enables Landfill Operators (LOs) in England and Northern Ireland (NI) to contribute a proportion of their landfill tax liability to community and environmental organisations to fund projects which aim to 'offset' some of the negative impacts of living in the vicinity of a landfill site.
LOs are required to ensure they only make contributions to an enrolled Environmental Body (EB) and that they do not receive any 'Unique Benefit' as a result of their contribution. EBs and LOs have a wide range of reporting and record keeping obligations under the Landfill Tax Regulations 1996 (Regulations). HMRC's Excise Notice LFT1 provides LOs with advice on meeting their obligations under the Regulations. The LFT1 can be read here on the Gov.UK website.
ENTRUST provides HMRC with independent assurance that LCF monies are being spent compliantly in accordance with the Regulations, by enrolling EBs and reviewing project compliance. As a direct consequence of carrying out this function, ENTRUST is also able to support LOs in mitigating their potential risk of clawback of the tax credit. (Clawback can arise when HMRC considers that LCF funds are found to have been spent non-compliantly and involves HMRC recovering, from the funding LO, the value of the tax credit it claimed against the misspent LCF funds.)
ENTRUST can provide a range of services to LOs to help them fulfil their obligations under the LCF scheme. Information about these services is available in the document on the right hand side of this page entitled 'ENTRUST Services to Landfill Operators'. This page also hosts the latest annual LO briefing note and archive copies from previous years. The LO Briefing note is sent annually to all EBs who have contributed to the Fund in the previous three financial years.