Finance Act 2016

99 Charge to apprenticeship levy

(1) Apprenticeship levy is charged if—

(a) a person has a pay bill for a tax year, and

(b) the relevant percentage of that pay bill exceeds the amount of the person’s levy allowance (if any) for that tax year.

(2) 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.

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

(4) 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.

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

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