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You may recall that it was announced in the Chancellor's Autumn Statement on 25 November 2015 that an Apprenticeship Levy would be introduced to help to deliver new apprenticeships.

Yesterday, 4th February, the Government published its draft legislation introducing the Apprenticeship Levy.

The Apprenticeship Levy is on UK employers to fund new apprenticeships. The rate will be that of 0.5% of an employer's payroll and each employer will receive an allowance of £15,000 to offset against their Levy payment. In effect this means that the Levy will only be paid by employers who have an annual payroll in excess of £3 million. By introducing the Levy in this way, it is estimated that less than 2% of UK employers will pay this Levy.

This Levy will affect employers in all sectors and is expected to come into force in April 2017.

Any comments on the draft legislation should be received by 2 March 2016, and so if you wish to contribute to the debate there are details of who to contact contained here.

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