apprenticeships
Apprenticeship Levy
Information & Guidance
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the apprenticeship levy information & guidance what is the Apprenticeship Levy?
how does the levy work?
In the 2015 Autumn Statement, the UK Government outlined plans to increase Apprenticeship participation to 3 million by 2020 by making funding changes and introducing an Apprenticeship Levy.
HMRC collect Levy (PAYE)
▶ Training can either be given to new recruits or existing staff.
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Key... Speak to training providers
Offer Apprenticeship training
Your company Service Provider Government
Employ an apprentice
The facts
▶A ll employers will receive an allowance of £15,000 to offset against payment of the Levy.
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Get your online account
With the clock ticking away to the introduction of the Levy, now is the right time for organisations to review their current Apprenticeship scheme, consider the implications of the Levy and consider how to maximise the opportunity and minimise the risk.
▶ The Levy will apply to employers across all sectors regardless of whether they already employ apprentices or not.
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It affects all organisations above a certain size, committing them to paying a percentage fee of their PAYE wage bill.
▶ The Apprenticeship Levy will be introduced to large employers who have an annual payroll in excess of £3m, with the first payments due in April 2017 at a rate of 0.5% paid through Pay as You Earn.
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▶ Employers who pay the Levy and are committed to Apprenticeship training will be able to get more than they pay into the Levy through a top up to their digital accounts.
Pay for training with vouchers*
Receive vouchers
Receive Apprenticeship training
Provide Apprenticeship training Check training is complete
▶ The Levy will need to be paid by larger organisations regardless of whether they reclaim voucher funds to purchase Apprenticeships. ▶ Smaller companies can still take advantage of available government funding, which may include an employer contribution.
Receive top up into your online account * Unused vouchers expire after 24 month
Pay 10% top up
** S ource: National Apprenticeships Week 2016 Toolkit
Contact us on 01483 44 85 30 / employers@guildford.ac.uk for more information
will the levy affect my business?
How can we help? In response to a number of enquiries,
Are you an employer with a UK payroll bill of more than £3m per year?
yes
no
Guildford College Services to Business has set up a Levy Support Service that helps employers to maximise the return on investment of the Levy. What the Levy Support Service offers: ▶ Advice and guidance clinics
You will need to pay...
You won’t need to pay...
0.5% of your annual payroll bill into the Levy
However once the Levy has been launched, you will have access to government funding for Apprenticeships via the Skills Funding Agency (SFA)
Minus the £15,000 allowance from the government
▶ Levy calculator ▶ Training needs analysis
£25,000
▶ Recruitment service for new apprentices
Pay bill: 300 x £25,000
▶ Upskilling and reskilling service for existing staff using Apprenticeship frameworks
Levy sum: 0.5% x £7,500,000
Training options available: ▶ Apprenticeships for new employees ▶ Apprenticeship funding used to develop and upskill existing staff
What happens if you do or don’t claim funds to train an apprentice?
do
don’t
Employer of 300 employees, each with a gross salary of
▶ Workforce planning support
then The government will top this up by 10%
Levy payment example:
▶ Programmes for all ages ▶ Development of core skills such as maths and English
£7,500,000 £37,500
Less allowance of £15,000
£22,500
Levy payment by employer
£22,500
What can be achieved: ▶ Recruitment programme for new employees using Apprenticeships
You will benefit!
Others will benefit!
You will receive more funds than you have contributed to the Levy, as a result of the top-up, allowing you to train apprentices and develop your own workforce
▶ Staff development of existing staff using Apprenticeship funding
Other organisations will claim and benefit from the Levy funds to train their apprentices and develop their workforce
▶ Maximise your return on investment
Contact us on 01483 44 85 30 / employers@guildford.ac.uk for more information
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Benefits of training an apprentice Apprenticeships help businesses grow... ▶ Apprenticeships ensure that your workforce has the practical skills and qualifications your organisation needs now and in the future. ▶ 89% of employers reported that Apprenticeships helped their business improve the quality of their product or service* ▶A pprenticeships enable businesses to grow their skills base resulting in increased profits, lower prices and better products*
Apprenticeships improve productivity while reducing costs... ▶ Apprenticeships are boosting productivity by helping businesses to expand the skills available in the organisation. ▶ The average person completing an Apprenticeship boosts productivity to businesses by on average £214 per week*. These gains include increased profits, lower prices and better products.
Apprenticeships help develop a motivated, skilled and qualified workforce... ▶ Apprenticeships can help tackle skills shortages. ▶ Apprenticeships can attract enthusiastic individuals with new ideas. ▶ Apprentices are supported by quality training from local training organisations, and training can be provided on the job, minimising the disruption to your organisation.
We took on our apprentice, Sam, as we wanted to discover the benefits of moulding a young workforce to our needs as a business, whilst developing relevant qualifications around our new employees. This has given us the opportunity to shape and upskill, and has also provided a fresh outlook and approach from a bright, young member of the team.
Steve Sammut
Director of The Rock and Pop Foundation
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▶ Employers say that qualified apprentices are 15% more employable than those with other qualifications. ▶ Businesses that offer Apprenticeships think that they help with their long-term development.
90%
of employers are either satisfied or very satisfied with the progress their apprentice is making with the Guildford College Group**
86%
of employers would recommend the Guildford College Group to other employers**
* Source: National Apprenticeships Week 2016 Toolkit ** Source: Guildford College Employer Survey 2016
Contact us on 01483 44 85 30 / employers@guildford.ac.uk for more information
To find out exactly how much you’ll contribute and for more information, advice and guidance contact us on: 01483 44 85 30 or email employers@guildford.ac.uk Guildford College Stoke Road Guildford Surrey GU1 1EZ