A tax called apprenticeship levy is to be charged in accordance with this Part.

The Commissioners are responsible for the collection and management of apprenticeship levy.

The amount charged for the tax year is equal to—

$N-A$

where—

N is the relevant percentage of the pay bill for the tax year, and

A is the amount of the levy allowance (if any) to which the person is entitled for the tax year.

The person mentioned in subsection (1) is liable to pay the amount charged.

Except so far as section 103 provides otherwise, a person who has a pay bill for a tax year is entitled to a levy allowance for the tax year.

The amount of the levy allowance is £15,000 (except where section 101 or 102 provides otherwise).

For the purposes of this section the “relevant percentage” is 0.5%.

The amount of the person's pay bill for the tax year is equal to the total amount of the earnings in respect of which the liabilities mentioned in subsection (1)(b) are incurred.

For the purposes of this section a person is treated as incurring, in respect of any earnings, any liabilities which the person would incur but for the condition in section 6(1)(b) of the Contributions and Benefits Act.

The Treasury may by regulations provide for persons specified in certificates in force under section 120(4) of the Social Security Contributions and Benefits Act 1992 (employment at sea: continental shelf operations) to be treated for the purposes of this section as the secondary contributor in relation to payments of earnings to which the certificate relates and as liable to pay secondary Class 1 contributions to which the certificate relates.

In this section references to liability to pay secondary Class 1 contributions are to liability to pay secondary Class 1 contributions under Part 1 of the Contributions and Benefits Act (and are therefore to be interpreted in accordance with sections 9A(6) and 9B(3) of that Act).