The new apprenticeship levy will have its challenges but have you considered the benefits of this new legislation when it comes into effect in April 2017?
The Government have already made their mark by abolishing the employers’ National Insurance Contribution (NIC) for apprentices under the age of 25 back in April 2016. This new levy is part of their commitment to increase the quality and quantity of apprenticeships available in England in order to reach their goal of 3 million by 2020.
The Levy will be payable on payroll bills of over £3 million per year at 0.5%. This will affect many businesses, who perhaps haven’t even considered apprenticeships for some time.
All employers will receive an allowance of £15,000 to be offset against the payment of the levy. This levy “pot” is then to be used on apprenticeship training and assessments from an approved provider only.
The Government will top up levy contributions by 10%.
The payments for apprentices studying English and Maths will be paid direct to the providers and not taken from the levy payments.
This is essentially another tax. However, businesses can benefit from this by utilising the levy to upskill existing team members. There is a huge employment demand upon us with nearly 21,000 people due to retire in the next few years.
Don’t waste this opportunity – look into your options now and prepare.
If you’re not sure whether the levy will affect you and want advice on this or other payroll matters, please contact Julie Mason at firstname.lastname@example.org or call 01254 679131.
At PM+M, we like to hear what our clients think about our services. Recently, we invited Tony Attard of Panaz, who we have been working with since they began trading almost 30 years ago, to talk about his experience.
Panaz first started using PM+M for their accounts and audit and as they have grown, Panaz started to use more of the services we have to offer, such as managing their payroll and pensions.
Here is Tony speaking about his experience with PM+M:
For a look at what more of our clients have to say about PM+M click here.
Daniel Hill – PM+M Marketing Team
Real Time Information is a new initiative introduced by HMRC in April 2013 to help streamline the process of payroll for all businesses. In this blog our Payroll manager Julie Mason explains what it means for SME’s and what you should be doing now to prepare.
Key points from the video are:
- If you have less than 50 employees, DON’T PANIC. The RTI compliance deadline has recently been extended to 6th April 2014 for smaller employers.
- Even though the deadline has been extended, look at putting proceedures into place now. Keep on top of your employee data and PAYE liability payments and prepare for the changes well in advance.
- Look at outsourcing your payroll function if you feel it is going to be too difficult to keep on top of.
How are you finding the transistion to RTI? Have you encountered any issues, and what would be your top tips for overcoming them? Leave a comment below, we’d love to hear from you!