Statutory and Voluntary Levies

1
Statutory and Voluntary Levies

• Lyndon Taylor
• Chairman AOP Professional Services Committee
• Independent Optometrist
• Vice Chairman S Cheshire LOC

2
Up to about 2000

• Historically LOCs have offered a Voluntary Levy
• 1/2 of all NHS sight test fees
• Often rose to 1-2 when 50 of sight tests
  privatised in 1989
• Usually only paid by independent practices
• Used to fund minimal LOC work and mostly sent to
  Central Fund

3
The Central LOC Fund

• Set up to support Optometry
• Funds-
• Primary Care Development
• Political lobbying
• Fighting Threats eg VAT
• Other Good Causes within optometry
• Runs AGM at National Optometric Conference

4
The Statutory Levy

• First appeared in late 90s
• MUST be paid by all contractors on Ophthalmic
  List
• Set by LOC at General Meeting
• May ONLY be used to run LOC business
• Varies from ¼ to 2
• May vary during year to achieve Neutral Budget

5
Levies post 2000

• Statutory Levy paid by all contractors
• Used to run LOC
• Payments/expenses to officers
• CET events
• Room Hire
• Admin Staff
• Websites etc
• Voluntary Levy still paid by some
• Sent in its entirety to Central Fund
• LOC only act as collector

6
So Whats New?????

• Joint Optical Bodies have set up an LOC Support
  Unit (LSU)
• Supported at special NOC by gt95 of LOCs
• Will provide LOCs with
• Advice
• Training
• Support network
• Most of current Central Fund work
• Help develop Extended Services

7
So What happens to the Levies

• LSU will be funded by a ½ Statutory Levy on ALL
  contractors
• In addition to whatever Statutory Levy that the
  LOC needs to run itself
• Voluntary levies no longer really necessary
• Difficult to remove VL
• Will probably just set it to Zero
• These changes will be happening soon

8
How does it affect you?

• Should expect changes to Levies in near future
• May be asked by LOCs to set up 2 separate
  Statutory Levies
• Is this possible?
• May be asked to pay the ½ direct to LSU
• Is this possible?
• Dont be surprised by 0 Vol Levies

9
Thank you