From 06 April 2017, the Government introduced a new ‘tax’ on businesses known as the Apprenticeship Levy.
The levy is charged at 0.5 per cent of a business’ annual wage bill.
All businesses are given a £15,000 allowance, which effectively means only businesses with a total wage bill of £3 million or more are required to pay the levy.
How it works
The Apprenticeship Levy is charged through the PAYE system on a monthly basis and you’ll need to tell HMRC how much you’ve paid through your Employer Payment Summary (EPS).
In return, businesses will gain access to a Digital Account which is facilitated via the Education & Skills Funding Agency (ESFA). There they will able to obtain funds from the levy to spend on Approved Training Providers that are on the Register of Apprenticeship Training Providers (RoATP) for apprenticeship Framework & Standards.
Small Non-Levy business can also access Apprenticeship Training, but are required to make a 10 per cent contribution.
The levy is compulsory for all businesses, whether you choose to take on apprentices or not.
How can we help?
Moore Thompson is a chartered accountancy firm which specialises in payroll. Our services range from free monthly updates for employers, to a fully comprehensive outsourced payroll package.
For a free, no-obligation meeting to discuss you needs, get in touch with us here.