10th January 2017
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:
HMRC have confirmed that it is not necessary to report Apprenticeship Levy if the employer has not had to pay it in the current tax year.
If you would like advice on the Apprenticeship Levy or other payroll matters please contact us.
Internet Link: GOV.UK apprenticeship levy