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Apprenticeship Levy: draft legislation published

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In early February 2016 the Government published draft legislation about the Apprenticeship Levy that will come into effect in April 2017. The legislation can be viewed here.

The legislation confirms much of what we have already been told:

  • The Levy will apply to all businesses with a payroll bill of £3m
  • A £15,000 allowance will be available to offset the payment of the Levy
  • The Levy will be charged at 0.5%
  • It will be paid via PAYE along with income tax and NI contributions

There was a strong suggestion that the Levy will be paid monthly, saying this was the ‘intention’. Further connected persons rules were announced to prevent companies with multiple payroll bills claiming more than one allowance.

Whilst the legislation confirms much of what was already publicly available, there are still many details that we need further clarification on before companies can make informed decisions as to how the Levy will work for them. For further information on this, please see our earlier post:

The Apprenticeship Levy: 7 Questions still to be answered.

For further information please contact Cassandra Macdonald –

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Register to download your free copy of our popular and thought provoking webinar on the latest Apprenticeship Levy developments. Recorded on 21st June 2016.

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7 questions

Apprenticeship Levy questions still to be answered.
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