Academy chains and education sector charities could face ‘apprenticeship tax’
Under the new proposals, employers over a certain size will be required to pay a percentage of payroll costs, but they will also be eligible for funding to hire their own apprentices.
The employee number threshold has not yet been set, so it is unclear how many organisations this will effect, but it is likely to affect a number of large academy chains and education organisations with charitable status, including exam boards.
The Confederation of British Industry has predicted that the tax will amount to around 0.5 per cent of payroll, and apply to organisations with over 250 employees.
A department spokesperson told Schools Week: “A larger employer would be required to pay the levy, and would have access to the fund, so this would include charities.
“But note the threshold for the definition of a larger employer has not been set. This will be confirmed once the consultation closes.”
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