The Apprenticeship Levy will be introduced in April 2017 and is designed to support the creation and funding of three million Apprenticeship starts by 2020. We hope these key facts will help you:
- The first levy payments will be due in April 2017 and will be paid through Pay As You Earn (PAYE)
- The levy will apply to any company where the salary bill is £3m or more regardless of whether they already employ Apprentices or not
- The rate for the levy will be set at 0.5% of an employer’s pay bill
- Employers will receive an allowance of £15,000
- Employers with a pay bill less than £3m will not pay anything into the Apprenticeship Funding Pot and will continue to employ Apprentices in the current way
- The levy payment will be then be ‘spent’ in the form of an electronic voucher that can be used to purchase training from the chosen college or training provider
- Companies who have a salary budget over £3m will pay the levy, regardless of whether they use the ‘training vouchers’ or not
The levy will be collected from all employers by HMRC and placed into the Apprenticeship Funding Pot. The only way that you can then ‘spend’ this money is by offering Apprenticeship training to new or existing staff within your business. The funding will be paid directly from the Apprenticeship Funding Pot to the college that you use for your training, with the Government topping up the pot by 10% for employers in England, meaning you will get out more than you are putting in.
Employers falling under the levy payment threshold (£3m) can still employ Apprentices and will be able to access government support and funding for the Apprentice (subject to eligibility).
Salford City College will be holding an Employers Information event in June to further explain the changes, the impact and the opportunity to large employers. Also learn how Salford City College can work with you to get the very best out of the Apprenticeship Levy. If you would like to take on an Apprentice, or have any questions at this time please contact the Apprenticeship Team 0161 631 5555 or e-mail email@example.com