Apprenticeship Levy

Taxation in the United Kingdom

UK Government Departments
HM Treasury HM Revenue and Customs
UK Government
VAT Income tax National Insurance Corporation tax Capital gains tax Motoring taxes Inheritance tax Stamp duty Insurance Premium Tax Air Passenger Duty PAYE
Scottish Government
Revenue Scotland Land and Buildings Transaction Tax Scottish Landfill Tax Air Departure Tax
Welsh Government
Welsh Revenue Authority Land Transaction Tax Landfill Disposals Tax
Local Government
Council Tax Domestic rates in Northern Ireland Business rates in England Business rates in Wales Business rates in Scotland Business rates in Northern Ireland

The Apprenticeship Levy is a UK business levy which is used to fund apprenticeship training. In the current (2017/18) tax year it is paid by employers with an annual pay bill of more than £3 million.

History

The Apprenticeship Levy was announced by Chancellor of the Exchequer George Osborne in the July 2015 budget which was held following that year's General Election.^[1] It was subsequently incorporated into law by Part 6 of the Finance Act 2016.^[2] and came into effect at the start of the 2017/18 UK tax year on 6th April 2017. It was projected to raise £2.675 billion in its first year of operation.^[3]

Operation

The Apprenticeship Levy is paid by employers with annual pay bills in excess of £3 million. In this context, the pay bill is defined as the earnings liable to class 1 secondary National Insurance contributions. The levy is payable at 0.5% of the total paybill (i.e. not just the element over £3 million) minus an annual "levy allowance" of £15,000.^[4]

The levy due by an employer is paid to HMRC through the Pay-as-you-earn (PAYE) process alongside payment of Income Tax and National Insurance contributions.^[5]

The use of the levy for funding apprenticeships which commence after 1 May 2017 is the responsibility of the Department for Education and the Skills Funding Agency in England. There are separate arrangements in Scotland, Wales and Northern Ireland, since apprenticeships are a devolved policy.^[6]

References

↑ HMRC, Chancellor George Osborne's Summer Budget 2015 speech, accessed 4 July 2017
↑ "Finance Act 2016, Part 6". Legislation.gov.uk. UK government. Retrieved 4 July 2017.
↑ "Information on Apprenticeship Levy" (PDF). UK Department for Education. Retrieved 4 July 2017.
↑ HMRC, Apprenticeship Levy - guidance for software developers, updated 9 September 2016, accessed 4 July 2017
↑ BPP University/BPP Professional Education, Employer Guide: Apprenticeship Levy Key Facts, October 2016 update, accessed 10 December 2016
↑ Department for Education, Apprenticeship Funding, updated 12 August 2016, accessed 10 December 2016

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.