What is the new Apprenticeship Levy & how significant will it become?
- The new apprentice Levy is a mandatory tax on all UK businesses based on a percentage of the total payroll including all payments such as salary and bonuses.
- The Levy will be administered by HMRC.
- The Levy is expected to raise close to £3bn. annually starting in April 2017.
- The system has not yet been commissioned or built but is expected to be operational in just 16 months.
- For the individual employer if the payroll is under £3m. there is no charge.
- Employers divide in two camps; either as a levy payer representing 2% of UK businesses or not: the remaining 98%.
- If you are Tesco this could hit £40m. annually before a penny of profit has been earned.
- All public services are included and will additionally have volume targets set by Government.
- The Government...