Apprenticeship levy investigations double

In 2018-19 HMRC launched 84 investigations into businesses that had underpaid the apprenticeship levy up from 33 in the previous year. This resulted in an extra £6.2m collected compared with £5.2m in 2017-18.

According to UHY Hacker Young many businesses view the levy as an extra employment tax with few expecting to recover the amount paid in. To do this businesses must use government approved training programmes that may not fit their requirements. Indeed figures show that only £480m of the £3bn paid so far had been used by 30 November 2018.

Partner Clive Gawthorpe said: ‘The increase in investigations suggests that HMRC focused on larger businesses initially because the value of potential underpayment was higher but is now widening its net to smaller businesses. We have seen additional problems arise among large businesses where several different parts of the same businesses group may...