Developments in the administration of the Apprenticeship Levy
Let’s Talk TaxEmployment Tax-Topical Tax
Developments in the administration of the Apprenticeship Levy
Developments in the administration of the Apprenticeship Levy
Mon 08 Oct 2018
Philip Hammond, Chancellor of the Exchequer, has announced “a series of measures to allow firms more flexibility in how the Apprenticeship levy is spent”. These include:
- an extra £90 million of government funding to enable employers to invest a quarter of their apprenticeship funds on people working for businesses in their supply chain; and
- a further £5 million for the Institute for Apprenticeships to introduce new standards and updating existing ones so that more courses can be offered.
The Government will also set out a process “in the coming weeks” (presumably around the time of the Budget) to seek views on the operation of the levy after 2020, to ensure it supports the development of the skilled workforce businesses need for the new economy.
For further advice on dealing with the apprenticeship levy, please get in touch with a member of the Mazars employment tax team.
Employment Allowance changes from April 2020 – will there be changes to the Apprenticeship Levy too?
The Employment Allowance currently allows certain businesses to reduce their Class 1 Secondary employer National Insurance Contributions (NICs) bill by up to £3,000. As of April 2020, there are going to be changes to those businesses that can claim the allowance. The relief is being removed from larger employers (those that incur employer Class 1 […]
Employment Tax highlights from the Autumn Budget 2018
Following the Chancellor’s announcements in the Autumn Budget 2018 we highlight below some of the key employment tax takeaways: IR35, employment status and off payroll working rules – reform of the private sector Following the changes made to how employment status needs to be governed within the public sector from April 2017, The Government will […]
As a tax year ends, a new tax year begins….
6 April, the start of the tax year and there are some significant changes to the employment tax rules, as well as the usual changes to tax rates, allowances etc, which are effective from today. It’s crucial that all employers are aware of these and consider the impact they may have on their internal processes […]
The Apprenticeship Levy…what you need to know
The new Apprenticeship Levy will be a significant cost to many employers but what benefits can be realised and what challenges lie ahead? Employers are required to begin making contributions from April 2017 (via the PAYE system) so now is the time to consider the implications and ensure that the benefits outweigh the costs. A […]
Draft Legislation published on Apprenticeship Levy
At the Summer Budget 2015, the Chancellor announced the introduction of the Apprenticeship Levy. The policy idea is to that the levy will be used to fund new apprenticeships, and also improve their quality in order to better develop vocational skills. It is not clear at present precisely how the funding of appropriate training out […]
Employers taking on apprentices…
In April the Government will introduce an apprenticeship levy of 0.5% of an employer’s wagebill (see below) which will be collected through PAYE. Each employer will receive an allowance of £15k to offset against their levy payment. This means that the levy will only be paid on any wage bill in excess of £3 million. […]