Apprenticeship Levy - the basics
Government state that from April 2017, all employers operating in the UK, with a pay bill of over £3m each year will be required to contribute to a new apprenticeship levy of 0.5%. Everyone is liable for the levy. There is a levy allowance of £15,000 per company. This means only employers with a pay bill of >£3m will actually have to pay. If you are a group of connected companies the group will share one £15,000 allowance.
If you are a company operating in Wales/Scotland/NI click here for information.
How will the Apprenticeship Levy affect your business - the basics.
- If your pay bill is £5,000,000
- Levy - 0.5% x £5,000,000 = £25,000
- Deduct your levy allowance
- £25,000 - £15,000 = £10,000
The levy comes into effect from 6 April 2017
Each month you will have to:
- Let HMRC know whether you need to pay the levy
- Include the levy that you need to pay in your usual PAYE payment to HMRC by 19 (or 22 if you report electronically) of the following month
For guidance from HMRC on details for your finance team go to https://www.gov.uk/guidance/pay-apprenticeship-levy
- Government will add a 10% top up to the funds in your digital account i.e. the funds you have available to spend on apprenticeship training in England
- Funds in your account will expire 24 months after they enter your digital account
- When payments are taken from your account, the service will automatically use the funds that entered your account first
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