annual payroll bill

Apprenticeship Levy: What You Need to Know

Apprenticeship Levy: What You Need to Know

With the confirmation that the Apprenticeship Levy will come into affect in less than six months, we take a look at what business owners need to know. What is it? The Apprenticeship Levy is a government-led initiative that will require businesses to make an investment in apprenticeships. How much will it cost? The levy will be charged at a rate of 0.5% of a business’s annual pay bill. There will be a levy allowance of £15,000 per year to offset against the levy, meaning only businesses who have a payroll bill above £3m will be obliged to pay. As an example: Example 1: an employer who would pay the levy An employer with an annual pay bill of £5m: levy sum: 0.5% x £5m = £25,000 subtracting levy allowance: £25,000 – £15,000 = £10,000 annual levy payment Example 2: an employer who would ... »