The new Apprenticeship levy
Important changes to Apprenticeship funding that could affect you as an employer…
The way Apprenticeships in England are funded has changed. However, Apprenticeships that began before May 1st 2017 will not be subject to the new rules.
How it works…
If your total annual wage bill exceeds £3 million you will pay a 0.5% Apprenticeship levy on that sum.
Once you have paid this amount you will then be able to access your organisation’s funding through your new Digital Apprenticeship Service Account.
Importantly, you will be entitled to a £15,000 allowance to offset the levy. Furthermore, you will receive a 10% top-up on your contributions. All contributions can be set against corporation tax.
Is your wage bill under £3m?
If your business does not reach the £3 million wage bill threshold, then you will not have to operate a Digital Apprentice Service Account until at least 2018.
However, larger companies in this category WILL have to contribute 10% towards training costs, with the government paying the remaining 90% to the training provider.
To which employers does the new levy apply?
The new levy only applies to your firm if its total wage bill exceeds £3 million. Therefore if you have around 150 reasonably well paid employees you are likely to be affected.
When will employers pay?
The government will start collecting the levy from April 2017. It will be collected monthly, based on live payroll data.It will be applied to groups of companies but not franchises.
How will the Levy work?
As an employer you will pay the levy into your online account. The government will then top-up the funds by 10%.
How much can be drawn down for each Apprentice?
Because each Apprenticeship programme is allocated a funding band, you should make sure you are aware of the band that applied to your organisation.
Who can be trained under the Apprenticeship System?
Current employees and new recruits of any age are eligible to follow an Apprenticeship programme.
Will there be any incentive to recruit 16 – 18 year olds?
Yes. This will be a minimum of £1,000, plus additional funding for training.
How will the system work for non-levy payers?
If your annual payroll bill is below £3 million then you will not be affected by the changes in 2017. However, if you are a relatively large firm that falls marginally short of the threshold, you may have to contribute 10% to the cost of training Apprentices.
You can find out more about the new rules, including answers to frequently asked questions, by visiting www.gov.uk
Brockenhurst College cannot accept responsibility for external websites
End Point Assessment Centres
Coming soon – all of the resources, information and guidance required for Brockenhurst College End Point Assessment Centres.