Instalment plan for RTITB levy
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• The Road Transport Industry Training Board at its meeting on April 6 decided on the proposals it will make to the Secretary of State for Employment on the rates of levy and grant which should apply for the training year commencing August!, 1971.
The levy proposals, based on the payrolls of employers coming within the scope of the Board, are as follow:—
Annual payroll Amount of levy £5000 or under Nil £5001 to £30,000 1.5 per cent Above £30,000 2.2 per cent The Board proposes that levies assessed at the rate of 1.5 per cent be made payable in one instalment, due one month after the date of assessment. Levies assessed at the rate of 2.2 per cent should be raised in two instalments; the first instalment of 1.5 per cent would become due one month after the date of assessment; the second of 0.7 per cent would be made payable in March 1972 so that it could be netted against the block grant for the fifth year.
Any employer with a payroll of £5000 or less, however, who wishes to continue within the Board's grant scheme can opt to do so on payment of the amount of levy that would be assessed to an employer with a payroll of £5000, ie he would have to pay £75.
Having raised the level of payroll at which the higher rate of levy becomes payable, the Board will now offer block grant only to employers with £30,000 or more annual payroll. In reaching this decision, the Board recognized that many of the smaller firms had been having difficulty in preparing and implementing the training plan which is required as the principal qualification for block grant.
This adjustment to levy rates now means that in addition to the 34,000 employers who will be relieved from levy altogether, ie the employers with an annual payroll of £5000 or less, a further 9000 will be paying a lower rate of levy than they paid last year. These will be the employers with annual payrolls of between £15,000 and £30,000.
At its meeting on April 6, the Board also decided to propose to the Secretary of State for Employment that the rates of grant in its next grants scheme should be expressed partly at fixed rates in pounds sterling and partly in points. The value of the point will be determined by the Board once it has full knowledge of its levy income and its grant commitments. In order to permit employers to calculate their probable grant return, the Board will announce as early as possible the minimum value of the point.
This system will ensure that the grants scheme will be "close ended" and adequately controlled. Consequently any danger of