From 6 April 2017 all employers, including charities, who have an annual paybill (broadly earnings subject to class 1 national insurance) of over £3,000,000 will be subject to the apprenticeship levy. Some of the key considerations are as follows:
- the levy is charged at 0.5% of your annual pay bill
- there is an annual allowance of £15,000 which is applied on a monthly basis, this allowance is shared with connected companies or charities
- if you are connected to other companies or charities which in total have an annual pay bill of more than £3,000,000, you will be subject to this levy
- you need to report your apprenticeship levy each month using your Employer Payment Summary
- employers can use the funding in their account to pay for apprenticeship training
- there is a 10% government top-up on funds for spending on apprenticeship training in England
- funds will expire 24 months after they enter your account.
The levy applies to employers across the UK, authorities in each of the UK nations manage their own apprenticeship programmes including how funding is spent on training.
For further details on how the levy will affect your charity, click here.
This article features in our Charity Newsletter Spring 2017. To see the full version please click here.
If you would like to find out more about any of the topics covered in our Charity Newsletter and how we at Robinson Reed Layton can assist, please contact our Charities Partner, Mark Williams, on 01872 276116 or mark.williams@rrlcornwall.co.uk. You can signup to receive our Charity Newsletter here.
This publication has been prepared by Robinson Reed Layton. It is to be treated as a general guide only and is not intended to be a comprehensive statement of the law or represent specific advice. No liability is accepted for the opinions it contains, or for any errors or omissions. All rights reserved.
Updated 24 April 2017