Technical consultation: draft regulations for the Apprenticeship Levy

In April 2017, the way the government funds apprenticeships is changing, through the introduction of the Apprenticeship Levy. Some employers will be required to contribute to a new Apprenticeship Levy.

Draft regulations 147B to 147J of the Income Tax (Pay As You Earn) Regulations 2003 which make provision for calculation, reporting, payment and recovery of the Apprenticeship Levy, were subject to consultation in the autumn. Some amendments have been made in response to comments received. Additional provisions have been added to cover matters relating to the operation of the levy, on which we would welcome comment.

This technical consultation will be of interest to employers who are likely to have a liability to pay the Apprenticeship Levy (employers with annual pay bills greater than £3 million, subject to the rules on connection), employer advisers, and payroll agencies.

The Apprenticeship Levy was first announced at Summer Budget 2015, and at Autumn Statement 2015 it was announced that it would come into effect in April 2017.