Apprenticeship Levy

THE APPRENTICESHIP LEVY ELAS TOPIC GUIDES

HEALTH&SAFETYMANAGEMENTCONSULTANTS

WHAT IS THE APPRENTICESHIP LEVY? In 2017 , the Government introduced the Apprenticeship Levy. To put simply, the Apprenticeship Levy is a tax that will be used to fund apprenticeships .

IS THE APPRENTICESHIP LEVY APPLICABLE TO MY BUSINESS? If you’re an employer with an annual payroll of over £3 million each year, then you should already be paying into the apprenticeship levy since 6th April 2017 . The Apprenticeship Levy is a tax and you should strenuously avoid trying to find loopholes or ways to work around it. Tax evasion is a criminal offence and can cause your business serious reputational damage.

SINCE 6TH APRIL 2017

APPLICABLE IF PAYROLL IS OVER £3 MILLION

HOWMUCH DO I NEED TO CONTRIBUTE TOWARDS THE APPRENTICESHIP LEVY? The amount your company has to pay into the Apprenticeship Levy depends on how big your annual payroll is. The Apprenticeship Levy is calculated by working out 0.5% of your companies payroll. For example, if a company has a payroll of £10 million they will have to pay £50,000 towards their Apprenticeship Levy. However, each company will also receive a £15,000 allowance from the Government to be offset against the Levy. This means that a company with a payroll of £10 million will have to contribute £35,000 towards the Levy.

£15,000 GOVERNMENT ALLOWANCE

0.5% OF PAYROLL

HOWDO I PAY THE APPRENTICESHIP LEVY? The Levy will be collected by HM Revenue and Customs monthly through Pay as You Earn (PAYE) .

WHY IS THE APPRENTICESHIP LEVY DIFFERENT TOOTHER TAXES THAT I HAVE TO PAY? Unlike other taxes, you are able to spend the Apprenticeship Levy before the Government takes it. You have two years to spend your Levy . But be warned, if you fail to spend all of your Levy in the two years, the Government will keep any that remains unspent.

CAN I USE THE APPRENTICESHIP LEVY TO PAY THEWAGES OF MY APPRENTICES?

No! You can only spend the fund on any training and assessments your apprentices may need.

TRAINING ONLY

WANT TO KNOWMORE?

At the ELAS Group we offer a wide range of training and e-learning courses that can help ensure your business is compliant when it comes to employment law : INTRODUCTION TO EMPLOYMENT LAW (Half day course) REDUNDANCY (Half day course) MOCK TRIBUNAL (Full day course) THE BRIBERY ACT (e-learning course)

If you are interested in any of our courses, please contact info@elastraining.co.uk Visit our blog for up to date information on all things employment law. blog.elas.uk.com/blog

CONTACT US TODAY FOR MORE INFORMATION 08450 50 40 60 info@elas.uk.com www.elas.uk.com

HEALTH&SAFETYMANAGEMENTCONSULTANTS

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