Companies with a wage bill of over £3 million (or that are connected to other companies or agencies that together have a total annual pay bill of more than £3 million) will now have to pay a 0.5% payroll tax, which is to be used for investment in training for apprentices. The levy must be reported and paid to HMRC through the employment tax (PAYE) process. Records of information used to calculate the levy must be kept for at least 3 years. Employers in England will then be able to access funding through a new digital apprenticeship service account, available after their final declaration to HMRC after 22 May 2017. The funding can be used towards funding training and post apprenticeship vacancies. The Government also automatically adds 10% to the funds in the digital apprenticeship service account on a monthly basis. Funds that are not used expire after 24 months of entering the employer’s account. The plan is to give all employers access to the account service by 2020.
For more information, please contact L&E Global.This information was contributed by Clyde & Co.