Author: Glenn

For many businesses, waste disposal is seen purely as a cost, an unavoidable expense required to stay compliant and keep operations running smoothly. However, there is growing interest in the idea that waste, when managed differently, can become a modest but meaningful source of income rather than a drain on resources.

The starting point is recognising that much commercial waste still has value. Materials such as metals, cardboard, plastics, glass, and certain by-products can often be separated and sold for recycling. While individual returns may appear small, the cumulative effect over a year can offset disposal costs and, in some cases, generate a surplus. This is particularly relevant for manufacturing, construction, hospitality, and retail businesses where waste volumes are high.

Technology and data are also playing a role. Improved tracking of waste streams allows businesses to understand what they are throwing away, how often, and at what cost. With this information, processes can be redesigned to reduce waste at source or to segregate materials more effectively. Cleaner, well-sorted waste commands higher prices and attracts a wider range of recycling partners.

Energy recovery offers another potential income stream. Organic waste can be converted into biogas through anaerobic digestion, while some non-recyclable materials can be used in waste-to-energy facilities. Although these solutions often require collaboration with specialist providers, they can reduce landfill charges and create long-term savings or revenue-sharing opportunities.

There is also a reputational benefit. Customers, investors, and supply chain partners are increasingly focused on sustainability. Businesses that can demonstrate circular practices may find it easier to win contracts, attract investment, or justify premium pricing.

Turning waste into income is unlikely to replace core trading profits. However, with careful planning and realistic expectations, it can reduce costs, support environmental goals, and create incremental value. In a tighter economic climate, even small efficiency gains can make a noticeable difference to overall business performance.

Scotland’s Finance Secretary, Shona Robison delivered her third Budget statement to the Scottish parliament on 13 January 2026. This is the final Budget before the Holyrood elections due to take place in May.

There were no changes announced to the Scottish Income Tax rates. Following the UK Government’s extension of personal tax threshold freezes, the Higher, Advanced and Top rate thresholds will also remain unchanged until 2028–29. The Starter rate band is set to increase by 40.3% and the Basic rate band by 13.6% in 2026-27. This means that a larger portion of people's income will be taxed at the starter and basic rates helping to protect lower income households.

The Scottish rates and bands for 2026-27 are as follows:

The standard personal allowance remains frozen at £12,570. 

No changes were announced to the residential and non-residential rates and bands for the land and buildings transaction tax (LBTT). The standard rate of Scottish landfill tax will rise to £130.75 per tonne and the lower rate to £8.65 per tonne from April 2026 maintaining alignment with the corresponding taxes in the rest of the UK. It was also announced that new council tax bands will be introduced from April 2028 for residential properties valued at £1m more. The Budget measures are subject to final approval by the Scottish parliament.

If you have not yet checked if and when you need to use Making Tax Digital (MTD) for Income Tax, you should do so as a matter of urgency. This is because from April 2026 the way many individuals report their tax to HMRC will change significantly. MTD for Income Tax represents a move away from the traditional annual self-assessment process towards a more frequent, digital approach, with taxpayers required to manage their affairs through an online tax account using compatible software.

From 6 April 2026, MTD for Income Tax will apply to self-employed individuals and landlords with qualifying income of more than £50,000 a year. A year later, from April 2027, this will extend to those with qualifying income between £30,000 and £50,000. Qualifying income is broadly the total income received from self-employment and property in a tax year, including income from multiple trades or rental properties. Other sources of income, such as employment income taxed under PAYE, dividends, pensions or partnership income, are excluded from this calculation.

Those within the scope of MTD for Income Tax will be required to keep digital records of their income and expenses and submit quarterly updates to HMRC. These updates provide summaries of income and costs and are intended to give HMRC a clearer picture of taxable income throughout the year. A final declaration will still be required after the end of the tax year, with any tax due payable by the following 31 January. A new points-based penalty system will also apply for late submissions and payments.

If you are unsure whether or when MTD for Income Tax will apply to you, or you would like help preparing for the changes, we would be happy to help.

It is recommended to check your National Insurance record as this can affect your future entitlement to the State Pension and other benefits.

By using the online service, you can see what National Insurance contributions you have paid up to the start of the current tax year, along with any National Insurance credits you have received. The record also highlights whether there are gaps in your contribution history. This will highlight tax years that do not count as qualifying years for State Pension purposes. These gaps can arise for a variety of reasons, such as periods of low earnings, time spent working abroad or career breaks.

The service also shows whether you are eligible to make voluntary National Insurance contributions to fill any missing years and how much this would cost. Importantly, it allows you to see how your State Pension forecast could change if you decide to make those additional contributions, helping you decide whether paying voluntarily contributions would be beneficial.

The Welsh Final Budget for 2026-27 was published on 20 January 2026. The Budget sets out the Welsh government’s revenue and capital spending plans, including detailed portfolio spending plans.

Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language confirmed that the Final Budget provides £27.5bn for people, public services and businesses across Wales. This is £1.2bn more than in 2025-26 and £400m more than at the Draft Budget. The additional funding includes resources for local government, the NHS and other Welsh Government priorities.

There have been no changes announced to the Welsh rates of Income Tax (WRIT) which will continue to be set at 10p for 2026-27. This means that the rates of Income Tax paid by Welsh taxpayers will continue to be the same as those paid by English and Northern Irish taxpayers in the new tax year.

The Budget also confirms no changes to the current residential and non-residential rates and thresholds for Land Transaction Tax (LTT) for 2026-27. Some changes to the Multiple Dwelling Relief (MDR) regime for LTT will take effect and a new limited refund provision for the higher residential rates of LTT aimed at supporting more affordable homes.

In addition, Landfill Disposals Tax (LDT) rates will continue to mirror UK landfill tax rates in 2026-27.