Apprenticeship Levy draft legislation released

23rd February 2016

Payroll Tax draft legislation has just been issued providing for the charging of a new Apprenticeship Levy from April 2017, as announced at the Chancellor’s Autumn Statement in November 2015.

The levy will help to deliver new apprenticeships and will be a levy on UK employers. In England, control of apprenticeship funding will be put in the hands of employers through the Digital Apprenticeship Service.

This will affect employers in all sectors. The levy will be charged at a rate of 0.5% of an employer’s paybill and will only be paid on annual pay bills in excess of £3 million. In reality this will mean that less than 2% of UK employers will pay the Apprenticeship Levy. Each employer will receive an allowance of £15,000 to offset against their levy payment.

The levy will be introduced in April 2017, and the government are calling for comments on the draft legislation to be received by 2 March 2016.