Guide
The tax check step
Last updated 15 September 2026
From 22 July 2027, applying for a waste permit in England includes a tax check. In plain terms, HMRC needs to know your business exists and you need to be up to date. If you are already registered for self assessment or corporation tax and file on time, this step should be simple. If you have been trading without registering, sort that out now, because the permit application is where it will catch up with you.
What the check is likely to look like
The waste rules have not published the mechanism. But since 2022, anyone renewing a taxi, private hire or scrap metal dealer licence in England has had to complete a tax check with HMRC and give the licensing body a code confirming it was done. The licensing body only sees that the code is valid. It does not see your figures. Whether the EA uses the same HMRC scheme is not confirmed, but it is the obvious model, and the preparation is the same either way.
How to prepare
If you are a sole trader, make sure you are registered for self assessment and have your Unique Taxpayer Reference to hand.
If you run a limited company, make sure it is registered for corporation tax and that your accounts and returns are filed.
Check that your Government Gateway login works. A surprising number of applications stall because someone cannot get into their HMRC account.
File any outstanding returns. If you owe tax you cannot pay in one go, HMRC's time to pay arrangements exist for exactly this situation, and being in an arrangement is not the same as being in arrears.
If you are VAT registered, be up to date there too.
Why this catches people
Waste clearance is a cash-heavy trade and part of the purpose of the reform is to make it harder to operate outside the tax system. If you have been doing clearances on the side of another job without declaring the income, the fix is to register and declare, and to do it before you apply.
Still to be confirmed
- Whether the EA uses HMRC's existing tax check code scheme or something new.
- How a brand new business with no tax history is treated. Under the taxi scheme, first-time applicants confirm they understand their obligations rather than proving a filing record.
- Whether the check repeats at renewal.
Frequently asked questions
- I am employed and do clearances at weekends. Do I need to register?
- If you are trading, yes. Income from clearance work needs to be declared through self assessment, and the tax check will expect to find you registered.
- Will the EA see how much tax I pay?
- Under the taxi and scrap metal scheme, no. The licensing body only sees that the check was completed. Whether the waste scheme works the same way has not been confirmed.
- What if I have a payment plan with HMRC?
- Under the existing scheme, being in an agreed arrangement does not block the check. Confirm this for the waste scheme once the EA publishes its process.
The readiness checklist lists the tax details to have ready.Check which permit you need
This guide is general information, not legal advice. The Environment Agency makes the final decision on any application.