Industry response

Our response to a technical consultation on the Apprenticeship levy

Draft legislation: regulations for the calculation, payment and recovery of Apprenticeship Levy
Our main concern with these draft regulations is the "how".  It is not obvious how HMRC requires the payment to be made. Is this with the usual PAYE bill each month?  Further guidance on the detail for payroll/ HR teams would be appreciated.

The detail references the allowance of £15,000 a year which is similar to the Employment Allowance process HMRC has in place where the employer reduces its PAYE bill by the allowance on a monthly basis and makes payment by the 22nd of the following month. But the document does not reference the payment of the actual levy and employers have not received any guidance on how to do this.

If the levy process falls in line with our members' manual processes of payment, any disruption could be reduced.  But our members do need to understand on a monthly/annual basis how they should calculate/ pay the levy.