The chief executive of the Chemical Industries Association (CIA) has called for a review of the apprenticeship levy, which will require all UK employers that have a pay bill of more than £3 million each year to invest in apprenticeships.
Steve Elliott has joined in with charities and other industry leaders to urge the government to work alongside business leaders and others in the sector to make sure that the levy is “fit for purpose” and until this is the case, the levy should not be introduced.
As it stands, the levy will come into force from spring next year, introduced on April 6th 2017. You will have to pay the levy if you’re an employer, irrespective of what sector you’re in, if your pay bill exceeds £3 million annually. The levy will be charged at a rate of 0.5 per cent of this bill and you will have a levy allowance of £15,000 a year to offset against the levy you will need to pay.
“We all want to see more apprentices and we all believe a levy could be part of the solution. The delay we are seeking will allow for what at the moment is a confused mechanism that has the potential for creating fewer apprenticeships, to become part of an effective solution,” Mr Elliot said.
The levy allowance will work on a monthly basis, accumulating throughout the year. What this means is that you will have an allowance of £1,250 a month and any unused allowance will be carried over from one month to the next.
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