Many haulage operators are unaware of the new ‘apprenticeship levy’ tax which comes into force from April 2017, the RHA has said. The association said that the only way to avoid simply losing the tax money is to gain it back as funding for an apprenticeship.
“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.
“That means this new tax, which is currently set at 0.5 per cent 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.”
Snape said that the only way firms are able to avoid losing the money they pay in tax is to get it back as funding for an apprenticeship.