HMRC has published draft legislation for the implementation of the Apprenticeship Levy to be levied on UK employers to fund new apprenticeships from 6 April 2017. The levy will be charged at a rate of 0.5% of an employer’s paybill in excess of £3 million. Each employer will receive an allowance of £15,000 to offset against their levy payment. The levy will be payable through Pay As You Earn (PAYE) and will be payable alongside income tax and National Insurance. The “paybill” will be based on total employee earnings subject to Class 1 secondary NICs. The HRMC Apprenticeship Levy website contains details of the levy and the draft legislation, together with explanatory notes. Comments are invited by 2 March 2016, but on the assumption that little will change, those employers affected need to start planning now.
Content Note
The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
