Employers battered as apprenticeship ‘levy’ details announced
After famously labelling the then Chancellor of exchequer Alistair Darlings increase in Employers National insurance as a stealth tax in 2010, George Osborne has gone one step further and hidden what could be considered as an effective increase in Employers NIC as an apprenticeship levy.
The proposals announced today amount to a 0.5% levy on an employers pay bill over £3m. Given the average wage in the UK, this would roughly start impacting those companies with around 120 employees and the government expects this measure to raise £3bn a year.
Ricky Noimark, Tax Director commented:
‘Having expressed a need for more apprentices whilst balancing the books nationally, employers are going to be feeling the brunt of the pain by funding these apprenticeship places through the levy. Whilst tying his hands with the triple tax lock promises, it seems the Chancellor has become inventive to find new ways to fund promises and balance the books.’