Richard Jenkins

Levy Allowance

Edited

Hi all (et Martin West)

I have an employer who has a wage bill over £3 million so is a levy payer.  The calculated amount using the 0.5% means they have a levy of circa £8,000 at the moment.

Questions:

1.  If at month 1 of the tax year, will the employer receive 1/12 each month of the £15,000 levy allowance (ie £1,250) meaning over the year the employer has £23,00 levy to spend.

2. If the £8,000 levy including the £15,000 levy allowance is fully spent and the employer has to make a contribution will they be capped to recruiting 10 apprentices or does this not apply as they are still classed as a levy payer?

3. If the employers wage bill drops below £3M I know the employer then required to pay a contribution but do they lose the calculated monthly Levy Allowance Payments too?

4. If the employers wage bill drops below £3M is the employer then required to comply with the Cap of 10 apprentices from the date they declared this.

The difficulties we face with this particular employer is that month on month they will drop in and out of being a Levy Payer :-(  ....  Any help on the questions asked would be greatly appreciated

Rich Jenkins

Replies

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Martin West

  1. The levy allowance only reduces the amount of Apprenticeship Levy the Employer has to pay by £15,000 across the year, it is not levy funds that the employer can spend on Training Apprentices.
  2. No
  3. See 1
  4. No

HTH

Richard Jenkins

Perfect thanks Martin.  As always you have been a great help