What is the Apprenticeship Levy?
In spring 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.
The Apprenticeship Levy will be introduced on 6 April 2017. The levy requires all employers operating in the UK, with a pay bill over £3 million each year, to invest in apprenticeships.
Who will pay the Levy?
As an employer, you’ll have to pay Apprenticeship Levy each month from 6 April 2017 if you have an annual pay bill of more than £3 million.
The rate for the levy will be set at 0.5% of an employer’s wage bill where it exceeds £3,000,000 and will be collected via PAYE. (So, if you are an employer, in any sector, with a pay bill that exceeds £3 million pounds, this will include you).
You can use the ‘Employer Levy Calculator’ to find out if you have to pay towards the levy and amount you will have to pay.
Employers who aren’t connected to another company or charity will have an Apprenticeship Levy allowance of £15,000 each year. This means the Apprenticeship Levy you have to pay is reduced by £15,000 across the year.
What if I don’t have to pay the levy?
If you do not pay the levy, you won’t need to use the apprenticeship service to pay for apprenticeship training and assessment until at least 2018.
When the new funding system begins in May 2017, you can still choose the training you’d like your apprentices to receive, an approved training provider and an assessment organisation using the registers available on the apprenticeship service. You will make a 10% contribution to the cost of this training and government will pay the rest (90%), up to the maximum amount of government funding available for that apprenticeship. We can offer all the training and support you need.
Free information and advice available now
If you haven’t recruited apprentices before the Apprentice Team at Vernon Community College are available to provide advice and guidance to support your recruitment needs.
Please contact Ayaz 0115 9414967
If you are an existing apprentice employer, we can work with you to plan how you use your levy payments. For a free consultation and to find out how the levy will impact you, please contact us:
Phone: 0115 9414967