• Commercial
  • Costs
  • 3 min read

What the Skip Costs: Strip-Out, Landfill Tax and the Waste You Design In

Landfill tax is £130.75 a tonne from April 2026. A fit-out that sheds 3.5 tonnes pays £463 in tax alone before the skip, the lorry or the labour.

Cafe mid strip-out with plywood partitions in steel frames over a tiled floor — the point at which strip-out and disposal costs are already fixed

Landfill tax is £130.75 per tonne from 1 April 2026, and it is charged on mass. A fit-out that sheds 3.5 tonnes pays about £463 in tax alone — before the skip, the lorry or the labour to fill it. Our commercial fit-out page is where this work is quoted — from a survey, because the engine behind our residential estimator has no commercial rates. The strip-out cost guide covers the wider job, and the refit carbon post covers the same decisions measured in carbon rather than money.

Every figure below is ex VAT, and none of them is a quote. They are published so you can read somebody's strip-out line and tell whether it is sane.


The tax nobody budgets for

The same four elements, in landfill tax

Tax only — not the skip, the haulage or the labour

Waste mass, tonnage and landfill tax for each route on the worked example
RouteWasteTonnesLandfill tax
Strip out and replace3,541 kg3.54£463
Keep · overlay · move · change242 kg0.24£32

£431of landfill tax not paid, on one restaurant, at one refresh. It is the smallest of the three savings on this page and the only one HMRC sets the size of.

HMRC landfill tax rates 2026-27, standard rate, from 1 April 2026. Assumes everything goes to landfill, which is the worst case rather than the likely one — inert tile is often crushed for hardcore, and gypsum must be segregated whatever happens to it. Tax only: skip hire, haulage and labour are all extra, and all of them also scale with mass. The tax rate changes each April, so check it against the current year before quoting it.

That is the tax alone. Skip hire, haulage and the labour to load it are all extra, and all three scale with the same mass — which is the real point. Disposal is one of the few costs on a fit-out where the quantity is fixed at design stage and everything downstream is arithmetic on it.

Why plasterboard is its own problem

Gypsum cannot go in a general skip. It is banned from landfill alongside biodegradable waste, because in combination the two produce hydrogen sulphide, so it needs a segregated stream, its own container and a contractor who takes it.

On a London site the cost is often not the binding constraint — the space is. A second container on a street with no loading bay is a licence, a suspension and sometimes a refusal.

  1. Around 34 kg of gypsum per square metreA stud wall with two boards each side. Before studs, skim or fixings — so a partition run is measured in hundreds of kilos, not bags.
  2. Around 15% of new board becomes offcutsWaste generated on the install, before anyone occupies the space. You pay to buy it and again to remove it.
  3. A separate container, by lawSegregation is not optional and not a preference. Budget the second skip or discover it on site.

One bathroom, the honest comparison

This is the number people most want and most often misread.

What actually fallsStrip-out and waste on our own three-option estimate: £1,871 to £829, about 56% less. Demolition time: two days to half a day.
What does not fallThe total. The resin carries its own material cost, so the two routes land close on the whole bathroom. Overlaying is the low-disruption route, not the cheap one.

We set out the method, and the two tests that decide whether a floor can take it at all, in going over the tiles instead of ripping them out.

The partition that costs money every lease

A six-metre screen at 2.8 metres high is just under 17 square metres. At UK trade rates of roughly £90 to £140 per square metre supplied and fitted, rebuilding it in plasterboard costs about £1,512 to £2,352 — every refit, before strip-out and disposal.

That recurrence is the whole commercial case for specifying something that comes apart. A demountable system costs more once. Plasterboard costs less repeatedly, and on a five-and-a-half-year lease "repeatedly" arrives sooner than most budgets assume. The drawing decisions that make reuse possible are in specifying partitions that survive the next tenant.

Wet trades, and what a panel swap removes

Refreshing a ten-square-metre feature wall in board and skim carries £330 of skim and paint labour alone at our standing rates — and board, strip-out and disposal sit on top of that.

The figure is small. What it stands for is not: four trades and a drying period, on a floor that may still be trading. Swapping the face on a retained frame is one fitter and no wet trades, so the saving that matters is usually the week you did not lose, not the £330.

How to read a strip-out line in a quotation

  1. Is the waste priced by mass or by skip?By skip hides the tax and the haulage inside a round number. By mass can be checked against the tonnage the drawing implies.
  2. Is gypsum separated out?If there is one disposal line for a job with partitions in it, the segregated stream has been forgotten or absorbed. Ask which.
  3. Does it say ex or inc VAT?Every figure on this page is ex VAT. A disposal line that quietly switches basis is a 20% surprise.
  4. What happens if there is asbestos?Pre-2000 building, no survey, a fixed strip-out price — one of those three is wrong. This is the commonest reason a strip-out price moves.

An itemised quotation follows within 48 hours of the site visit, priced stage by stage rather than as a single figure — which for this work means the strip-out and the disposal appear as their own lines, with a quantity and a rate, rather than as a lump you cannot interrogate.

What these numbers are not

They are not a quote, and they cannot become one from a drawing. Strip-out cost is driven by access, floor level, whether there is a lift, what the street allows, what an asbestos survey finds and what is actually behind the wall. A published rate multiplied by an area is a sanity check, not a price.

The other honest limit: the tax rate above changes most Aprils. It is correct for the 2026-27 year and it will not be correct forever, so check it against the current HMRC figure before you use it in a budget.

If you want the ladder run over one live project, with both routes priced open-book so the strip-out line is visible on each, get in touch. A strip-out is quoted after a walk round, never from a drawing.

Common questions

Straight answers

The standard rate is £130.75 per tonne from 1 April 2026. It applies to the mass of what you send to landfill, so it scales directly with how much material leaves the building rather than with the value of the work. The rate rises most Aprils, which is why a strip-out budget written against last year's figure understates the disposal line. Check the current HMRC rate before you quote from any published figure, including this one.
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