Apprenticeship levy

The start date for the apprenticeship levy is 6 April 2017, and it will impact many charities, despite the sector’s lobbying on the issue. Although the levy is to fund apprenticeship schemes, employers with significant payroll costs will be exposed to an increased cost of employment, no matter what sector they are in and irrespective of whether they traditionally take on apprentices.

The levy is 0.5 per cent of the pay bill, minus an annual allowance of £15,000. This means that employers with pay bills below £3m will not be required to contribute. For those charities which are affected, the levy will be charged as part of the regular PAYE payments to HMRC and will be allocated to a specific digital account. This can then be applied towards the employers’ funding of apprenticeship training costs.