Policy News Journal - 2016-17

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

You’ll need to pay the levy if all the following apply:  you supply labour (including subcontractors) to a client  you pay Class 1 secondary NICs on the earnings of those workers  your pay bill exceeds £3 million (including any connected companies or charities)

Joint ventures

If you’re in a joint venture partnership where 2 companies each have a 50% share in a further company, neither company will have overall control. As a result, the joint venture would not be connected to any other companies. The 2 companies and the joint venture would therefore each be entitled to their own levy allowance of £15,000. Other types of joint ventures will get a full £15,000 allowance if they’ve been set up part way through the tax year. They’ll need to check if they’re connected to another employer at the start of the next tax year to work out their allowance for the following year.


For voluntary-aided schools, foundation schools, free schools and academies, the governing body is the employer. Each governing body will be entitled to an allowance of £15,000.

For other maintained schools, the local authority is the employer. The local authority remains legally responsible for payment of the Apprenticeship Levy for schools under their control, even if they’ve delegated responsibility for payroll including payment of Class 1 secondary NICs. Each local authority has an annual allowance of £15,000.

The employer for faith schools will be the local authority if the school is voluntary-controlled, otherwise it will be the governing body.

Multi-academy trusts will get a single annual allowance of £15,000.

If a school becomes a voluntary-aided school, foundation school, free school or academy part way through a tax year, the academy’s governing body will be responsible for the Apprenticeship Levy from this point and get a full allowance of £15,000.

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Digital Apprenticeship Service for levy paying employers in England 6 February 2017

The Skills Funding Agency has provided an update on when levy paying employers will be able to register to use the Digital Apprenticeship Service and what they can do in advance to prepare.

The Skills Funding Agency (SFA) has a Blog which recently provided an update on the private beta testing of the Digital Apprenticeship Service (DAS). This prompted questions from employers as to when the service will actually be available. This useful response came from the SFA:

“We have invited a small selection of employers to register on the new apprenticeship service over the coming weeks.

We are phasing the registration so that we can continue testing and improving the service, before inviting all levy- paying employers to register by the end of February.

In the meantime, there are a few things you can do in advance so that you're ready to register. To register, you will need:

 Government Gateway login details for the PAYE schemes you want to include in your account.  Details for each organisation that will be making an agreement with a training provider for apprenticeship training, including the Companies House or charity number (if you have one). Government Gateway is the online service that your payroll or finance department use to submit tax returns. If you don’t have your Government Gateway login details, you may need to ask someone from your payroll or finance department to help you set up the account, or to set it up on your behalf.


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