A WORCESTER accountancy firm has raised concerns that businesses in the city that will have to pay the new Apprenticeship Levy are unaware of how it works.
Bishop Fleming’s warning follows the introduction of the Apprenticeship Levy back in April, which was introduced by the Government to fund more apprenticeships across the UK.
The Government expects the levy to raise £3billion a year to help fund three million apprenticeships by 2020. The charge applies whether or not an employer takes on apprentices, or is already part of another apprenticeship scheme.
Employers who have to pay it are charged at a rate of half a per cent of their wage bill.
However, businesses don’t have to pay the levy if their annual wage bill will be less than £3million.
Head of Payroll at the Worcester accountancy firm, Will Hanbury, urged businesses to keep an eye on their wage bill throughout the year, particularly as it reaches £3million.
“Each month an employer now has to carry out an extra calculation. Firstly, working out the total wage bill for the year to date, and then deducting from half a per cent of that figure the levy allowance available to date, to see if any levy is payable,” he said.
“The danger is that employers who think they do not have to pay the levy are not bothering to check. They need to do the numbers each month to confirm the position.
“The good news is that any unused allowance from earlier months can be carried forward to the next month in the same tax year, so it’s not lost.”
