APPRENTICESHIP LEVY

The Apprenticeship Levy will affect all organisations with an annual payroll of over £3million, regardless of whether they already currently employ Apprentices or not.

APPRENTICESHIP LEVY
The Levy will be payable by employers in the UK at the rate of 0.5% of the payroll cost through PAYE alongside Income Tax and National Insurance.

There will be a Levy Allowance worth £15,000 for each tax year. This means the levy is only payable on pay bills over £3 million (because 0.5% x £3 million = £15,000)

It is possible to recover 100% of your Apprenticeship Levy and significantly increase the skill levels of your existing staff or new recruits.

In addition, the Government will apply a 10% Top-up to your funds. This means for every £1 that enters your digital account, you will have £1.10 to spend on apprenticeship training.

HOW TO MANAGE LEVY FUNDS
Apprenticeship Service
The apprenticeship service is an online digital system (similar to online banking) that has been set up to support the apprenticeship levy.

The online service then allows those employers to financially manage their apprenticeship programme and help them to estimate their financial spend and recruit apprentices. If you do not have an Apprenticeship Service account set up click here.

The Government will pay £1,000 to employers if they train a 16-18 year old apprentice or if they train 19-24 year olds leaving care or who have a Local Authority Education and Healthcare plan.

APPRENTICESHIP FUNDING FOR NON-LEVY PAYERS
Co-Investment
There are two types of employers who will be benefit from government support towards the cost of their apprenticeships training:

  • Employers who haven’t paid the levy and want to purchase apprenticeship training from a college.
  • A levy-paying employer with insufficient funds in their digital account to pay for the cost of training and assessment they want to purchase.

The government will pay 90% of the costs of training and assessment. The employer will be responsible for paying just 10% of the costs.

Employers with fewer than 50 employees will have 100% of the training and assessment costs covered when training a 16-18 year old.

The Government will pay £1,000 to employers if they train a 16-18 year old apprentice or if they train 19-24 year olds leaving care or who have a Local Authority Education and Healthcare plan.

APPRENTICESHIP FLOWCHART
Click here to see the Apprenticeship Flow Chart.

CONTACT US
For more information or to discuss your Levy fund with one of our Account Managers contact Ellie on 01422 418 431 or e-mail levyenquiries@calderdale.ac.uk