It’s a common misconception that companies are liable to pay the Apprentice Levy only if employing apprentices, but this is not the case. This is a question that I am often asked by employers, and there can be some confusion for employers as the payrolls of connected entities need to also be considered.
Here are three questions employers frequently ask me about the Apprenticeship Levy:
1.Who needs to pay the Apprenticeship Levy?
As an employer, you have to pay Apprenticeship Levy each month from 6 April 2017 if you:
2. How do I calculate my annual pay bill?
Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions (NICs) such as wages, bonuses and commissions. You must include payments to:
Your pay bill does not include:
3. How much do I need to pay?
The amount due is 0.5% of your pay bill, after the Apprenticeship Levy allowance has been taken into consideration.
What you need to know about the Apprenticeship Levy Allowance
What should I do now?
All levy paying employers should register with the Apprenticeship Service
If you have any questions on the Apprenticeship Levy, or any payroll related matter, please do contact me.