Tax changes - What’s in store for Employers?


Chris Campbell

Chris Campbell

Tax Senior Manager

20 January 2017


    The newly announced Apprenticeship Levy comes into effect in April, impacting on all UK employers with a payroll cost in excess of £3million. 

    In what may be a surprise to some, this levy will be payable regardless of whether an organisation engages apprentices. The Levy will impact on 2% of employing companies nationwide, and businesses affected can include those with a sub-£3million payroll, which form part of a group which has an overall bill over that figure.  

    There is also a need for businesses to consider what their payroll consists of – in respect to the value of pay, additional benefits on top of regular remunerations and also those employees working abroad – and do they add up to influence whether or not the Levy then applies. 

    We also have the small matter of the Scottish Government flexing its financial powers by changing income tax thresholds for the first time and what this will mean for employees working in both Scotland and England.  

    Those fully affected will pay £314 more in income tax than employees in other parts of the UK.

    We expect to see significant activity among our employer client base focussed on these issues as they position themselves, with our guidance, for the coming changes.