Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

Apprenticeship funding reforms October webinars 27 September 2016

The Department for Education has organised regular webinars for stakeholders, who have an employer focus, to learn about the latest information on the apprenticeship funding reforms. These webinars are largely focused at those employers who have not yet been involved in a webinar or stakeholder event and aim to be a mechanism to capture those that might just be new in coming to the information. The webinars will be working alongside other events and updates to tell the same narrative rather than providing any extra insight. After registering, you will receive a confirmation email containing information about joining the webinar . Apprenticeship Funding Reforms - Latest updates will occur several times. Please register for the date and time that works best for you:

 7th October  28th October  18th November

Dates will be extended if there is sufficient demand with the aim to have further sessions in December and going on into 2017. The webinars will always reflect the latest information and so will obviously be updated once the further guidance is published. Apprenticeship funding will change from April 2017, with the introduction of the Apprenticeship Levy and new funding rules. This webinar with the Department for Education will be an opportunity for our sector to hear an update on the funding changes and to put your questions to the team developing the policy. In advance of the webinar, you can see the proposals at GOV.UK .

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Apprenticeship Levy Technical Consultation on the draft regulations 28 September 2016

The technical consultation on the draft regulations for the calculation, payment and recovery of Apprenticeship Levy continues and will close on the 14 November 2016.

The draft regulations make clear that only where an employer has or expects to have a levy liability will they have to engage in the reporting of the Apprenticeship Levey to HMRC.

Employers with a paybill of £2.8 million or less in the previous tax year and who believe that their pay bill will be less than £3 million in the current year (2017 – 2018) will not have to engage with the Apprenticeship Levy. In brief the draft regulations:  Set out that an employer is required to assess their annual pay bill amount for the previous and current tax year to decide if they are liable for the levy (as above).  Make provision for the due date of the Apprenticeship Levy to be by the 19th (or 22nd if you pay by an approved method electronic communications) following the tax month was calculated.  Place a requirement on employers to notify HMRC of the levy which is to be paid and make provision for the information which should be included in this return - the employer will use the Employers Payment Summary (EPS) to report their Apprenticeship Levy liability due to date and also the amount of annual levy allowance the employer may allocate to multiple PAYE references.  Set out how to calculate the monthly levy allowance on a cumulative basis, in order to calculate levy liability - they also set out how to calculate levy liability both in the first month of the tax year, and in subsequent months.  Allow both single and employers who are part of a group (Company unit or Charity unit, which has apportioned the £15,000 annual levy allowance across the unit) to apportion the annual levy allowance between multiple PAYE schemes.  Make provision for recovery of overpaid levy by the employer – which will require the employer to first offset apprenticeship levy overpaid against any amount of which the employer is liable to pay under the Income Tax (Pay As You Earn) (Amendment) Regulations 2017 before making a claim to HMRC for a refund of any balance owing.


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