Explaining the Apprenticeship Levy
The apprenticeship levy has been introduced by the government and as of April, 6th 2017 all employers with an annual wage bill of £3 million plus will pay into the levy, to invest in apprenticeships.
This will affect roughly 1.5% to 2% of employers in England, who will then access the apprenticeship levy to fund in-house apprenticeships. Those affected by the levy will contribute 0.5% of their annual wage bill but will also be allocated a £15,000 per year allowance for training plus a 10% monthly top-up from the government paid, directly into their digital apprenticeship service account.
The Levy is paid directly via PAYE to HMRC and the funds will expire after 24 months, meaning this is a use-it-or-lose-it scenario for the levy funding.
It is possible for employers to top-up their levy funds if they wished to put additional candidates through apprenticeship programmes over and above their levy contributions.
What about smaller businesses?
SMEs who are not paying into the apprenticeship levy will be able to access co-investment funding on a 1:9 ratio, meaning 90% of the funding will be accessed from the apprenticeship levy or additional government funding with the business contributing the remaining 10%.
If you would like further information on how the levy will affect your business, you can contact the apprenticeship employer helpline via email (email@example.com) or on 08000 150 600 or speak to one of Professional Academy’s business development team who would be happy to help.
If you would like to talk to one of our business development team about the apprenticeship programmes available and how the schemes will work, please do contact us via our Apprenticeship contact form, or drop us a call on 01223 365 505 and one of our team would be happy to have chat at any time.