The Apprenticeship Levy is being introduced from 6 April 2017 and will be payable by large employers. The Levy will be 0.5% of the employer’s pay bill, which is explained later in this article, but there is an annual allowance of £15,000.The allowance will be given on a pro-rata basis throughout the tax year.
The recent HMRC guidance confirms employers will need to report their Apprenticeship Levy liability each month:
An employer’s annual pay bill is all payments to employees that are subject to employer Class 1 secondary NICs. Broadly wages but excluding benefits and expenses. HMRC have confirmed that employers must include payments to employees for whom there are no employer NICs including:
The Apprenticeship Levy will need to be reported each month on the Employer Payment Summary (known as the EPS) and should include the following:
If you would like advice on the Apprenticeship Levy or other payroll matters please contact us.
Internet Link: GOV.UK apprenticeship levy