The use of large up-front fees and disproportionate deposits has already resulted in significant cost consequences for one care provider.
The levy will be 0.5% of an employer’s pay bill for a tax year less an annual allowance of £15,000. This means that the levy will start to operate on earnings over £3 million in the relevant tax year.
The levy is to take effect from 6th April 2017. It will apply to employers who are liable to make employer’s national insurance contributions and will be collected through PAYE. If two or more organisations are connected, they will only have one allowance between but they will be able to decide which of them has the allowance. Connected organisations are where one has control over another or both are controlled by a third person or organisation. Where the connected organisations are both charities, they will also need to have the same or substantially similar purpose and activities.
“Earnings” will have the same meaning as it does for national insurance purposes and where earnings are exempt from national insurance, they will not count towards earnings for the purposes of the levy. However, the various national insurance thresholds will be disregarded for the purposes of the levy.
The government plans to create an online portal called the Digital Apprenticeship Service which all employers will be able to access. Employers who have paid the levy will receive electronic vouchers of £15,000 to off-set the levy and will potentially be able to get out more than they have paid in, if they are committed to training apprentices. All employers, including those who have not paid the levy, will be able to get some support. HMRC anticipates that fewer than 2% of employers will be caught by this levy but it has been criticised by some employers who make little use of apprentices as funding apprentices for others.
There are also various anti-avoidance provisions to catch earnings which are deferred or paid off-payroll though service companies.
For more information
Please contact Doug Mullen.
The government announced on 16 May that it will provide a fund of £400m to cover the costs of removal and replacement of cladding to high rise residential blocks which have failed tests.
Whilst some people are under the impression that preparing a Lasting Power of Attorney (LPA) is simply a case of completing a form and ticking a few boxes, it is about far more than this.
A big fear for some people facing divorce and the inevitable carving up of the matrimonial assets. They seek assurances that such assets will be “ring-fenced” and retained for them.
Thinking about the legal status of being a cohabitant probably isn’t at the top of the ‘to do’ list.
When an individual is thinking about making a gift to another individual, consideration needs to be given to the Potentially Exempt Transfer (PET) trap.
We are now only a few weeks away from the biggest change to data protection laws in over 20 years. Are you compliant?
The tragedy, in this case, is that there were options readily available to the midwives that they could have used. This was not a case of having to go above and beyond.
Arising from the recent Family Division announcement, people who think they are legally divorced may in fact still be married.
The SCCS has issued providers in the scheme a series of updated and new documents in order to assist with their National Minimum Wage review.
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