The Road Haulage Association is concerned that many transport companies are still unaware that they will be required to pay a new tax from April 2017, called the apprenticeship levy.
“It has become clear that while most firms know that there are new industry apprenticeships, many are unaware that at the same time they are going to be taxed,” said RHA deputy policy director – employment and skills, Colin Snape..
“The apprenticeship levy is not only relevant to very large companies. All firms with total gross payroll costs exceeding £3 million at consolidated group level will have to pay the levy,” Snape continued.
“That means this new tax, which is currently set at 0.5% of payroll cost above the £3 million threshold, will hit haulage firms with roughly 80 trucks or more, or those with a smaller fleet if they have other activities within the business, such as van operations, warehousing, workshop or other activities. And we cannot rule out the possibility of that £3 million threshold being reduced in future years.
“The only way firms can avoid simply losing the money they pay in this new tax is to get it back as funding for an apprenticeship.
“The new Trailblazer apprentices such as LGV driver, warehouse operative and supply chain operative (for those working in the traffic office) are well funded from April next year. Some RHA members are considering establishing their own in-house training operation, others are seeking out local training providers.
“I expect that levy payers will make up most of first wave of interest in the new Trailblazer apprenticeships but firms of all sizes will follow close behind. Companies with payroll of less than £3 million escape paying the levy – but will be able fully to access funding for apprenticeships, with even better packages for small companies,” Snape says.
“While the levy is unwelcome, the RHA is working to ensure the industry takes full advantage of what should be an important new opportunity for firms of all sizes to take better control of the recruitment and training of staff,” he says.
