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Apprenticeship Levy Explained
What is the Apprenticeship Levy?
If your company has a yearly payroll of £3 million or over, you will be making payments towards the apprenticeship levy each year at 0.5%.
In introducing the apprenticeship levy, the government passed on the responsibility of funding apprentices on to larger businesses.
How Does the Apprenticeship Levy Work?
Businesses are advised to utilise their apprenticeship levy contribution and not lose it. Each month payments are calculated from the information submitted to HMRC and the funds transferred to the digital account, these are accrued over the months up to 24 months when the funds will be removed from the digital account.
You manage your online levy payments via an online portal called the Digital Apprenticeship service. The portal allows you to manage your funding and delivery easily online.
The digital account can plan your start payments, on programme payments and predict how much levy you will use over time.
What can you use the levy for?
The apprenticeship Levy can only be used for the delivery of apprenticeships. There are currently 513 apprentcieship standards approved for delivery across a range of sectors up to level 8. More information can be found here at https://www.ifa.org.uk/
Use your levy to upskill existing staff or recruit new staff, it's never been easier to train your staff.
Depending on the size of your levy pot, you may find your funds run low or are used up. If you use all your levy money, the government will fund further starts at 95% with a 5% contribution from you.
The apprenticeship levy allows your business to increase its productivity, develop your staff and attract new talent. It enables you to nurture the talent of the future, talent that will remain loyal to your company.
If you are interested in hiring an apprentice or looking to upskill your current staff, then what are you waiting for? Give us a call today!