Somewhat overshadowed by the Government's IR35 changes to the public sector, another change in April relates to the Apprenticeship Levy. This is a statutory levy to address the perceived skills shortage in the UK with the aim of creating 3 million new apprenticeships and support training and development for all UK workers.
This process will affect all large employers, which includes umbrella companies and recruitment agencies with a pay bill of over £3 million per month.
How will this levy impact contractors?
In very much the same way as Employer NIC is calculated, from 6th April NASA will make the statutory 0.5% deduction on all payments received. This deduction, like the admin margin will receive tax and NI relief. This will be shown in the breakdown section of your payslip.
If you have any questions, you can contact our payroll team directly on 0117 929 7683 (option 2).