APPRENTICESHIP LEVY WHO IS ELIGIBLE TO PAY?
Employers with a wage bill of £3million or more are required to pay into the apprenticeship levy from May 2017. All employers receive an offset allowance of £15,000. Example: Employer with a £3,500,000 wage bill. Levy sum: 0.5% of £3,500,000 = £17,500 Allowance: - £15,000 Annual payment: £2,750
HOW WILL THE LEVY BE PAID AND ACCESSED?
The apprenticeship levy will be paid through the PAYE system on a monthly basis alongside income tax and national insurance. These funds are then transferred into the Digital Apprenticeship Service account where these funds are turned into digital vouchers. These digital vouchers can then be used to pay for apprenticeship training.
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CAN THE LEVY BE USED TO FUND APPRENTICESHIPS FOR CURRENT STAFF?
As well as recruiting new employees, the levy can be used to up-skill current employees who meet the eligibility criteria.
WHAT IF I AM NOT A LEVY PAYER?
If you’re looking to hire an apprentice you will need to reserve the funds on the Digital Apprenticeship Service website. We can take you through this step by step or complete the process for you if required. Companies with 49 employees or less or those employing apprentices between the ages of 16-18 could also be eligible for additional funding.
