- The Apprenticeship Levy will be introduced in April 2017.
- It is designed to help create 3 million apprenticeships by 2020.
- Companies with a payroll of more than £3million per annum will have to pay the levy. This means that 98% of employers will not have to pay the levy.
- The levy will be set at 0.5% of an employer's wage bills and will be collected through PAYE.
- The government is also introducing a levy allowance of £15,000 per year, meaning that the total amount employers need to spend is 0.5% of the wage bill, minus £15,000.
- Once an employer has declared the levy to HMRC, they will be able to access funding for apprenticeships through a new digital apprenticeship service account.
- A monthly 10% top-up will be applied to the funds employers will have for apprenticeship training.
- Funds will expire 24 months after entering the digital account, if not spent on apprenticeship training.
The aim is that employers who commit to Apprenticeships will be able to get out more than they pay into the Levy, using the top up payments. This makes the levy a long term solution to support growth and commitment from our country’s employers.
Why you need to act now
- If you don't use your levy allowance, you'll lose it
- We're offering you an initial meeting with no obligations to help you plan - use it
- If you need a partner further down the line - we have the experience you need
- We're already helping other providers - what are you waiting for?