The Apprenticeship Levy was introduced in April 2017 and is designed to maximise and support the creation and funding of apprenticeship starts.
The levy is 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.
We work with many large employers, supporting with training programmes to get the most from their levy payments. We can help with upskilling current staff, identifying aspiring/future talent to moving staff to the next level, or creating customised programmes for groups of apprentices incorporating your company values and priorities.
Employers falling under the levy payment threshold (£3 million) can still employ apprentices and will be able to access government support and funding for the apprentice (subject to eligibility).
APPRENTICESHIP LEVY KEY FACTS
Payroll Bill
The levy applies to any company where the annual payroll bill is £3 million or more
Levy Rate
The rate for the levy is set at 0.5% of an employer’s payroll bill
Purchasing Training
The levy monies will be paid into the employers digital account, this will be topped up by 10%, and can then be used to purchase training from the chosen college or training provider
Budget over £3 million
Companies who have a salary budget over £3 million will pay the levy, regardless of whether they use the digital account or not
Government Apprenticeship Incentives for employers.
As part of their drive to protect employment and opportunities for young people, the Government have announced significant grants for employers who employ a new apprentice until 30th September 2021.
Employers who employ a new apprentice between 1 April 2021 and 30th September 2021 will receive £3,000, regardless of their age.
This is on top of the existing £1,000 payment already available for new apprentices aged 16 – 18 and those under 25 with an Education, Health and Care Plan, meaning that some employers could receive £4,000 in total.
Payments are made direct from the Government, via the new digital apprenticeship service.
Further Construction Grants are available through the CITB. If you choose to register with them you may be entitled to an additional £8,500 in Apprenticeship Grants. See CITB website here for more detail.
NEED HELP OR ADVICE?
If you would like more information or advice on how we can help you maximise your levy spend, or if you would like to support with recruiting apprentices contact our Apprenticeship Recruitment Team.
Or alternatively, you can use our form on the Contact Us page.
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