Did you know?
There is an Apprenticeship Levy coming into force on or after 6th April 2017.
What does that mean?
This means that all employers with an annual wage bill of £3 million+ will be required to pay 0.5% of the ‘paybill’ to the Government to fund new apprenticeships.
You will however be able to receive an allowance of £15,000 to offset against the levy, which will be used towards apprenticeship training.
How will the money be collected?
The money will be collected through HMRC as a PAYE alongside tax and NI. The ‘paybill’ will be based on total employee earnings subject to Class 1 secondary NIC’s.
Impact on the Economy (ref: David Gauke MP, Financial Secretary to the Treasury)
It is expected that the levy will support productivity growth through the increase in training. It may have a near-term impact in reducing earnings growth, although by supporting increased productivity, it is expected that the levy will lead to increased profitability for businesses, and increased wages over the long-term.
How will it be monitored?
It will be monitored through employers’ tax returns.
This information is for guidance only any further details relating to the apprenticeship levy and taking on apprentices, please contact Stephanie@ipersonnel.org.uk