Changes confirmed by Government
Cabinet has announced their decisions following our levy consultation. After reviewing your feedback, they have decided to amend the description of one Classification Unit (CU number 84330) by removing the word ‘Modern’ from the CU name ‘Modern Apprenticeship Co-ordinators employing apprentices’.
Our original proposal
If you’re self-employed or employ staff, you pay the Work levy. This levy pays for injuries and accidents that happen at work or are work-related.
We charge the Work levy at different rates depending on the industry you’re in.
Industries are grouped together into levy risk groups first, eg building completion services, and classification units second, eg painting and decorating services.
Online-only retail businesses all have the same CU
Currently, we classify businesses who sell their goods online only under ‘CU 52595 Non-store retailing’, irrespective of the types of products they sell.
For example, an online business selling books is classified the same as a business selling furniture. They’re also grouped with other direct sellers, such as those selling through a market stall.
In comparison, brick-and-mortar or store-based businesses are classified differently and pay different levies, based on the products they sell.
For example, a book retailer is classified differently to a furniture retailer.
We need to regularly review our CU groups to make sure:
- the right businesses are classified together
- it accurately reflects the:
- work they do
- risk of injury their employees are exposed to.
If you want more detail on this topic and the thinking behind what is being proposed, see the full consultation document.