Apprenticeship Levy



What is the Apprenticeship Levy? 

The Levy has been put in place from April 2017 to collect a TAX from large UK businesses with a turnover of £3 million or more, to generate funds that will support and enhance the quality and amount of apprenticeships available. It aims to use this money to pay for 3 million new apprenticeships by 2020.

 When and how is it paid?

The relevant large UK businesses, subject to the Levy, will be required to start paying from April 2017. It will be paid on a monthly basis through the PAYE system the same way you pay Income Tax or NI contributions.

How is the levy calculated?

The rate is 0.5% of the employer’s paybill, however, all firms receive an offset allowance of £15,000. The £15,000 allowance is divided into 12 monthly allowances of £1,250. If the 0.5% of the monthly paybill is more than £1,250, the employer pays the difference as the Apprenticeship Levy.

How to report the amount that needs paying?

This is documented through your monthly EPS (Employer Payment Summary) reports.

Information for schools:

For most of the schools the governing body is the employer, and each governing body will be entitled to a £15,000 allowance.

All employers of smaller UK businesses with a turnover less than £3 million are excluded from the new Apprenticeship Levy. In case this limit is exceeded, annualised calculation will be triggered for the Levy and will continue for the rest of the tax year.


22 replies
  1. free finance advice
    free finance advice says:

    Does your blog have a contact page? I’m having problems locating it but, I’d like to send you an email. I’ve got some suggestions for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it grow over time.

  2. home business success
    home business success says:

    I’m now not sure the place you’re getting your info, however good topic. I must spend some time studying much more or figuring out more. Thank you for excellent info I was looking for this information for my mission.

  3. education for all
    education for all says:

    I blog frequently and I genuinely appreciate your information. This great article has truly peaked my interest. I am going to take a note of your blog and keep checking for new details about once a week. I subscribed to your Feed too.

  4. gold investment funds
    gold investment funds says:

    Hey There. I found your blog using msn. This is a really well written article. I’ll make sure to bookmark it and come back to read more of your useful information. Thanks for the post. I’ll certainly return.

  5. online degrees
    online degrees says:

    Wow, superb weblog layout! How long have you ever been running a blog for? you make running a blog look easy. The full glance of your web site is great, let alone the content material!

  6. financial advice for young people
    financial advice for young people says:

    I’m really enjoying the theme/design of your blog. Do you ever run into any web browser compatibility issues? A number of my blog readers have complained about my site not working correctly in Explorer but looks great in Chrome. Do you have any solutions to help fix this issue?

  7. online learning
    online learning says:

    We’re a gaggle of volunteers and starting a brand new scheme in our community. Your web site offered us with valuable info to work on. You have done an impressive process and our whole group will probably be grateful to you.

  8. home based jobs
    home based jobs says:

    It is appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I desire to suggest you few interesting things or suggestions. Maybe you could write next articles referring to this article. I wish to read even more things about it!

  9. free employment law advice
    free employment law advice says:

    Have you ever thought about writing an ebook or guest authoring on other blogs? I have a blog based on the same information you discuss and would love to have you share some stories/information. I know my visitors would appreciate your work. If you’re even remotely interested, feel free to shoot me an email.

  10. health promotion
    health promotion says:

    Magnificent goods from you, man. I’ve have in mind your stuff prior to and you’re simply extremely great. I actually like what you’ve acquired here, really like what you are saying and the way in which by which you are saying it. You’re making it enjoyable and you still care for to stay it wise. I cant wait to read much more from you. This is actually a terrific website.|

  11. payday loans
    payday loans says:

    A motivating discussion is worth comment. I believe that you should write more about this topic, it may
    not be a taboo matter but typically people do not discuss such subjects.
    To the next! Many thanks!!


Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *