The Apprenticeship Levy
From April 2017, the Government will introduce The Apprenticeship Levy for all Public, Private & Voluntary Sector employers with an annual pay bill of more than £3 million. It will require employers to invest in apprenticeships and the size of the investment will depend on the size of the business. It is part of the Government’s drive to train around 3 million apprentices by 2020 and decrease the focus on employee training outside of the work place.
The amount payable is 0.5% of the amount of the total pay bill in excess of £3million. The payment will be made monthly with the PAYE/NIC. And the first payment is expected in May.
Once registered with HMRC and having paid the levy, employers will be able to access funding through the digital apprenticeship account, choosing and paying Government–approved training providers. The Government are also giving a 10% top up on funds, so for every £1.00 paid into the account, the employer will be able to spend £1.10 There will be a time limit of 24 months to use these funds. For more information,
Watch our advisory video which looks at The Apprenticeship Levy in further detail by clicking here.