Policy News Journal - 2016-17

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

Defining Pay To ensure comparability with national gender pay gap figures, GEO has been consistent with the definition of pay used by the Office of National Statistics (ONS) for the Annual Survey of Hours and Earnings (ASHE). As such “pay” includes basic pay, paid leave, maternity pay, sick pay, area allowances, shift premium pay, bonus pay and other pay (including car allowances paid through the payroll, on call and standby allowances, clothing, first aider or fire warden allowances). It does not include overtime pay, expenses, the value of salary sacrifice schemes, benefits in kind, redundancy pay, arrears of pay and tax credits. Publication timetable Employers may need to introduce new systems or processes to analyse their gender pay gaps. To ensure that employers have sufficient lead in time, they will have about 18 months after commencement to publish the required information for the first time and must then publish annually thereafter.

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CIPP quick poll on Apprenticeship Levy 15 June 2016

Do you have employees in more than one UK nation? If so, this will mean the requirement to use more than one apprenticeship body when the Apprenticeship Levy is introduced.

To help us understand awareness and readiness, please take a moment to complete our CIPP Poll on our home page (bottom right) which asks:

England, Scotland, Wales and Northern Ireland have individual apprenticeship authorities affecting the introduction of the Apprenticeship Levy in 2017; do you have employees in more than one nation?

Background to the Apprenticeship Levy

The levy will apply to all UK employers in both the private and public sectors.

It is payable on annual pay bills of more than £3 million. Employers with an annual pay bill of less than £3 million will not pay the levy. These employers will continue to have access to government funding to support apprenticeships. The levy will be charged at a rate of 0.5% of an employer’s pay bill. Levy payments will be collected monthly by HMRC through Pay as You Earn (PAYE), payable alongside tax and National Insurance. Pay bill will be based on total employee earnings subject to Class 1 secondary National Insurance contributions (NICs). There will be a £15,000 fixed annual allowance for employers to offset against their levy payment. A connected person rule, similar to the one used for the Employment Allowance, will mean that employers who operated multiple payrolls will only be able to claim one allowance for the levy. Individual employers’ funding for apprenticeship training in England will be made available to them via a new Digital Apprenticeship Service (DAS) account. Employers will be able to use this to pay for training for apprentices. The service will also support employers to identify a training provider, choose an apprenticeship training course and find a candidate.

Employers will be able to use their funding (up to a cap which will depend upon the standard or framework that is being trained against) to cover the cost of an apprentice’s training, assessment and certification.

The levy will put apprenticeship funding in the hands of employers and will encourage employers to invest in their apprentices and take on more. Employers in England who pay the levy and are committed to apprenticeship training will be able to get out more than they pay in to the levy through a top up to their digital accounts. The government will apply a 10% top-up to monthly funds entering levy paying employers digital accounts, for apprenticeship training in England, from April 2017. All funds entering a levy payer’s account will be increased, so every £1 will be increased to £1.10 in value.

Operational guidance for employers


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