What is the Apprenticeship Levy?
Set to be introduced in April 2017, the Apprenticeship Levy has recently been reaffirmed by the Government to help fund an increase in apprenticeships by 2020. The specifics of the levy were initially decided in the Conservative Party Manifesto 2015, where it was announced that three million more apprenticeships were targeted in the next five years. The levy is set in place to help fund and deliver said increase.
Who will pay the levy?
This levy will affect all large employers that have a payroll in excess of £3 million per annum, and is set at 0.5% of their wage bill, collected through PAYE (pay as you earn). Smaller employers with a payroll less than the stated £3 million will remain the same, however they are still able to take advantage of available Government funding when it comes to supporting apprentices.
Why is it needed?
Apprenticeships can significantly benefit and boost the success of a company, something that the Government recognises. According to the National Apprenticeship Service, 72% of businesses employing Apprentices reported an increase business growth. Not only that, hiring Apprentices attracts new talent, with many individuals leading on to managerial roles within an organisation.
How will it work?
All employers affected by the levy will receive an allowance of £15,000. This will be allocated in the form of an electronic voucher that can be used to purchase training from recognised providers to both new and existing staff members.
Need some help?
Our Business Advice team are offering free advice and guidance on the Apprenticeship Levy along with valuable tips on how to make best use of the allowance for your business.
Call 01642 333322 or email email@example.com to book your appointment.’
For more information on the Apprenticeship Levy, follow this link Apprenticeship Levy PDF leaflet.