David Heaton, employment tax expert on the review on apprenticeship levy, changes to tax on benefits and voluntary payrolling
Apprenticeship levy under review
The government has announced that it is to amend the rules governing ‘connected companies’ payments under the apprenticeship levy, set to give many small business owners greater flexibility in managing the costs of the new charge.
The apprenticeship levy is due to apply from April 2017 and will be charged at the rate of 0.5% of employers’ pay bills, subject to a £15,000 levy allowance.
Under original proposals in the 2015 Autumn Statement, if a group of companies were ‘connected’ then only one employing company in the group could claim the £15,000 allowance. The definition of connected companies and charities is the same as that used in the Employment Allowance.
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