A leading business and financial adviser is calling for clarification over how a new Apprenticeship Levy (AL) will operate in Scotland. Grant Thornton is warning many businesses could be hit financially if they’re not given enough time to prepare for the levy, which will come in to effect as of April 2017.
The AL was announced by the UK Government in its summer budget and will be applied to all UK employers. The levy amount is 0.5% of the annual pay bill, however, each group of companies receive a levy allowance of £15,000 per year to offset the levy payable figure.
As apprenticeships are a devolved policy, each of the UK nations manage their own apprenticeship programmes. As yet the Scottish Government have not released details as to how they envisage the Scottish system will work.
Monica Houston, Tax Manager at Grant Thornton in Scotland, commented:
“The Scottish Government’s approach to Modern Apprenticeships in recent years has been widely regarded as world-leading, working in partnership with business leaders to tackle long term social issues such as chronic youth unemployment. Apprenticeships are now at the centre of Scotland’s approach to workforce development and there’s no sign that this is set to change. With that in mind, it’s essential that businesses are given as much clarity as early as possible on how Holyrood plans to collaborate with the wider workforce and the other UK nations to assist employers with a cross border workforce.”
“The Levy should be regarded as an opportunity for employers and we hope the Scottish Government takes steps to ensure we continue to invest in our future talent. Tackling societal issues and creating a sustainable, vibrant economy in Scotland benefits us all and we’re hopeful that political leaders will act quickly and responsibly to ensure Modern Apprenticeships continue to be a valuable part of Scottish working life.”