Apprenticeship Levy

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The Apprenticeship Levy and what it means to your business

Employers with a total pay bill of £3 million or more, will be required to pay towards the national apprenticeship programme. The money will be collected across the whole of the UK by HM Revenue and Customs through the PAYE system.

Who pays the Levy?

The Levy applies to all UK employers and each employer will have an allowance of up to £15,000 against their Levy. In reality this means employers from both the public and private sectors with an annual ‘pay bill’ of £3 million or more will be required to pay 0.5% of that into the Levy.

How is the Levy calculated?

The Levy has been set at 0.5% of the total annual ‘pay bill’ and this will exclude benefits in kind but it is expected to include other remuneration that is liable to PAYE and/or NIC with holdings. The Levy will be collected via the Real Time Information System alongside Income Tax and NIC.

What reliefs are available?

Employers will receive an allowance of £15,000 to offset against the Levy. From April 2016 there is also an exemption for Employers Class 1 NIC for qualifying apprentices under the age of 25.

More information

Contact Business Wales Skills Gateway to find out more information

Or telephone 03301 228 338 for more information.