5 things you need to know about the Apprenticeship Levy
- Employers with a payroll over £3 million will pay the levy
- The Levy is at a set rate of 0.5% of the wage bill
- Employers paying the Levy will need to hire apprentices to balance the books
- Employers with a payroll of less than £3 million will still need to pay their employer contributions
- Levy funding can only be spent on apprenticeship training and assessment with approved providers such as the Development Fund who are registered to deliver the courses
The Apprenticeship Levy
The new Apprenticeship Levy applies to all employers with a payroll of over £3million per annum, and has been introduced by HM Government to fund and encourage the increased provision of Apprenticeships.
The Levy is not optional, and is being collected via PAYE at a rate of 0.5% of payroll. It applies whether or not an employer is providing apprenticeships.
The Levy is a real incentive for businesses to put an apprenticeship solution in place, as it allows access to the Levy fund to support apprenticeships in the business. However, this needs to be done through organisations, like the Development Fund, who are government accredited providers.
By using our services you gain access to a proven and trusted source of apprenticeship provision that is funded from your Levy payments.
If you don’t make use of the Apprenticeship Levy, your levy contribution will be used by the Government to fund Apprenticeships for smaller businesses.
Next steps:
As apprenticeship experts, we’re here to help you understand how they can benefit your business. Our experts work with you to identify the most appropriate approaches for expanding your existing programmes, or implementing new ones for the first time.
We will help to ensure the Apprenticeship Levy works for you, by training and assessing QCFs to not only balance the books, but to provide the skilled talent your business needs. Our team are on hand to talk to you about your requirements and answer your questions, so please feel free to call us today. For further information about the Apprenticeship Levy please contact [email protected] or call 0116 4970671.