SfP World Service and the Apprenticeship Levy

Feb 16 2017

The government has set a target of recruiting 3 million new Apprentices by the year 2020. In order to fund this, the Apprenticeship Levy will be introduced for April 2017. 

The levy is charged at a rate of 0.5% of the pay bill.  However, there will be a £15,000 fixed annual allowance for employers to offset against their levy payment.  This means that only employers with an annual pay bill of more than £3 million will have to pay anything.

Levy payments will be collected monthly by HMRC through PAYE (payable alongside Tax and National Insurance).  Existing PAYE legislation will be extended so that the levy will follow the normal rules for recovery of underpayment, record keeping, etc.  Apprenticeship Levy payments are a deductible expense for Corporation Tax.

What SfP World Service can do:
SfP World Service can automatically calculate the amount of levy due on your payroll and report this in the Employer Payment Summary (EPS) file sent to HMRC each month. The EPS contains aggregated figures for all payrolls in the PAYE scheme.

The reporting requirements include:
  • the amount of the annual Apprenticeship Levy allowance you’ve allocated to that PAYE scheme to date
  • the amount of Apprenticeship Levy liability due to date in the current tax year
Employers must report this section if they
  • expect to have a paybill exceeding £3 million in the PAYE year
  • had a pay bill exceeding £3 million in the preceding tax year
SfP World Service will automatically take the calculated levy values from the payroll processing and output them in the EPS file.  This must be submitted by 19th of the next month as usual.  Payments are made with the rest of the PAYE bill.

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