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Apprentice Levy – How will it affect you?
The Government has recently published draft legislation on the introduction of the apprenticeship levy. It confirms that from April 2017, employers with a wage bill of more than £3 million will have to pay a 0.5% levy of their paybill to fund apprenticeships.

The legislation will be introduced in Finance Bill 2016, and the levy will be payable through PAYE, alongside income tax and National Insurance.

The calculation of the amount to be paid will be based on the same total employee earnings figure as the one that is used for class 1 national insurance contributions. Employers will receive a £15,000 allowance to offset the payment of the levy, which will be paid in vouchers, although it is not yet clear how the vouchers can be spent.

It has also been stated that employers who operate multiple payrolls will only be able to claim one allowance.

The Government estimates that the levy will be paid by fewer than 2% of UK employers.
Posted on 19 Nov 2016

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