What does this mean for your business and apprenticeship plans?
Any apprenticeship levy payment to HMRC will be allowable for Corporation Tax.
The pay bill is based on the total amount of earnings subject to Class 1 secondary NICs. Earnings include any remuneration or profit coming from employment, such as wages, bonuses, commissions, and pension contributions that you pay NICs on.
The Levy is not charged on other payments such as benefits in kind, subject to Class 1A NICs.
The funds can be taken from the online account by way of vouchers to pay for apprentice training. It can only be spent on training from a government-approved training provider.
The funds cannot be used for wages, statutory licences to practise, travel and subsidiary costs, managerial costs, traineeships, work placement programmes or the costs of setting up an apprenticeship programme.
The levy allowance will operate on a monthly basis and will accumulate throughout the year.
Any unused allowance will be carried over. However, the funds will have to be used within a 2-year period, otherwise they will be lost.
If you have multiple PAYE schemes and do not use the full £15,000 allowance, you will be able to offset the unused amount against another one of your schemes once the tax year has ended.
For more in depth information about the levy on the government website.