You see the word Apprenticeship and you’re probably already thinking that you’re not eligible to get involved. Well, think again, because this one is different.
The apprenticeship Levy is a levy on UK employers to fund apprenticeships for anybody who is the age of 16 or over. The levy is completely in the hands of the employer and is charged at a rate of 0.5% for organisations with a pay bill of £3m or higher. However, for businesses whose pay bill is below this figure will still receive funding. If you’re starting your apprenticeship after 1st May 2017 the government will fund 90% towards the cost of the apprenticeship, with your employer paying the remaining 10%.
How much will I pay if I’m part of the pay bill with £3m or higher?
As mentioned before, you will be required to pay a 0.5% levy depending on the amount of your pay bill that is above the limit of £3 million. You will receive a £15,000 allowance which will offset the first £3 million of your pay bill.
For example, if we take a pay bill of £10 million and take into account any government support:
£10m x 0.5% = £50,000
Minus allowance of £15,000 = £35,000
10% Government top up = £3,500
Total Training Amount = £53,500
How do I use my levy allowance?
The Government will provide you with an online digital account in which you can access your levy fund. This will be updated to show any money that’s been paid and any further funding or deductions that have gone towards training.
Once you’ve setup your account you can then begin to add information about learners who will be participating in the apprenticeships, what courses they’re taking, the training provider that is being used and any costs that are associated with it.
Finally, once all of this is complete and the training provider has confirmed and given any correct information that is required, the money will automatically be taken from your digital account and the training can begin!
Just keep in mind that you can only spend your levy funds with organisations that’re on the Approved Register of Apprentice Training Providers supplied by the Government. It cannot be spent on covering costs associated with apprentices; this includes, but is not limited to wages, remuneration, or to pay for any forms of training for your wider team members.
So why should you be excited?
Why wouldn’t you be!? This is a fantastic opportunity for you to get involved in Government funded training for your staff, with nearly all of the costs covered by the Government with courses ranging from Level 1 (Foundation) up to Level 4 (Degree Equivalent).
Or if you’re an employee and your employer is supplying this opportunity to you, it will cost you absolutely nothing. This is a chance to better yourself and potentially move forward in your chosen career. What’ve you got to lose in this situation?
So what’re you waiting for? Get involved and take advantage of the Apprenticeship levy today.