Apprenticeship levy approaches
Businesses are preparing for the apprenticeship levy which is due to launch on 6 April 2017.
Employers with an annual turnover of over £3 million will have to pay a 0.5% levy of their wage bill into apprentices and training for their business.
An annual levy allowance of £15,000 will also be available to each employer to offset against their liability.
Research by City & Guilds found that the majority of employers (87%) are having trouble recruiting the right staff while 33% who are eligible to pay the levy are still not aware of the coming changes.
Kirstie Donnelly, MBE managing director of City & Guilds, said:
“It’s vital that everyone in the skills sector and government gets out there and communicates with these less enlightened businesses to help them see the huge potential benefits apprenticeships can bring.”
Paying the levy
From April 2017, eligible businesses will have to report the amount due to HMRC.
The levy must be reported on the Employer Payment Summary within 14 days after the end of each tax month, so for example the first report will be due on 19 May 2017.
Reporting must continue until the end of the tax year, even if your bill reduces and you no longer have any levy to pay.
The apprenticeship levy should be paid at the same time as your monthly PAYE payment.
Contact us today to discuss the apprenticeship levy.