What do we already know?
We updated you on the Apprenticeship Levy in our February 2016 Newsletter Government reforms (3): Apprenticeships and on the Government’s guidance on this levy in our April 2016 Newsflash ACAS & Government guidance on apprenticeships & the levy.
What’s new?
- The House of Commons Library has published a briefing paper, available here, about the apprenticeship levy, including details on what it is, how it will work and what the level of support for it is.
- The Government has rewritten its guidance, available here, to reflect that it intends to introduce an amendment to the Apprenticeship levy provisions (in the Finance Bill 2016) to permit connected companies and connected charities to split between them the annual allowance of £15,000 which can be set-off against the levy. This apportionment should then be notified to HMRC before the start of the tax year. As the Finance Bill 2016 currently stands, connected companies and connected charities must allocate the whole of the £15,000 levy allowance to which they are entitled to one of their number.
- Also, of interest to employers of apprentices aged 25 and under, is that they no longer have to pay National Insurance contributions in respect of those apprentices. This change came into effect on 6 April 2016 and applies to both existing employers with apprentices and those taking on a new apprentice. See here for further detail.
