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ICAEW seeks further apprenticeship levy amendments

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The Tax Faculty of the ICAEW has asked the government to consider further amendments to the apprenticeship levy provisions in the Finance Bill (see http://bit.ly/29I2LCO). The apprenticeship levy is a new tax on employers, to be charged at a rate of 0.5% of an employer’s total pay bill, coming into effect from 6 April 2017. Employers will receive an allowance of £15,000 to offset against their payment. The ICAEW’s main concerns are:

* Clause 88: The allowance should be set against payments on a first-in, first-out basis, rather than 1/12th per month, to avoid employers having to apply for refunds.

* Clauses 90 and 91: Connected employers should be able to share the allowance between constituent entities and be able to change the allocation of the allowance during the year. Similarly, single entity employers with more than one PAYE scheme need to be able to share the allowance between their different PAYE schemes and be able to change the allocation of the allowance between schemes.

* Clause 109: The start date of 6 April 2017 should be pushed back to 6 April 2018, giving time to put software in place.

Issue: 1317
Categories: News
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