summerhouse-training-courses-gloucester What Is The Apprenticeship Levy

As part of the government’s commitment to supporting the creation of three million new apprenticeships by 2020 an apprenticeship levy will be introduced from April 2017.

It is important for businesses to be prepared for the levy as it will apply to all UK employers and replace apprenticeship funding currently provided by the government.

Employers in the UK whom have a wage bill of over £3 million will need to pay the levy. It will be paid at a rate of 0.5 per cent of an employer’s wage bill, and will be collected through Pay as You Earn (PAYE).

summerhouse-training-courses-gloucester More Employer Information

EMPLOYER CASE STUDIES

RECRUIT AN APPRENTICE

summerhouse-training-courses-gloucester How Will The Apprenticeship Levy Affect You?

Scenario 1
Do you have less than 50 employees and a salary bill of less than £3 million?

  • You won’t make any contribution to the apprenticeship levy.
  • All training will be fully funded by the government for 16-18 year olds and 90% for 19+ Apprentices, you will contribute the final 10%.
  • Payment can be made in monthly instalments.
  • Funding can be used to up-skill employees(including graduates), or to recruit apprentices of any age.
  • You may be eligible for a cash payment towards the training.

Scenario 3
Do you have a salary bill of more than £3 million?

  • You will contribute 0.5% of your annual salary bill into the apprenticeship levy.
  • The 0.5% will be paid through a payroll tax.
  • Funding can be used to train up existing staff (including graduates), or to recruit apprentices of any age.
  • Funding can be used to up-skill employees(including graduates), or to recruit apprentices of any age.
  • You can access your funds through an online digital account.
  • These funds will expire after 24 months.
  • For every £1 that enters your digital account you will get £1.10 to spend through a 10% top-up from the government.
  • Any member of staff under the age of 25 who is enrolled on an apprenticeship programme will not be subject to national insurance contributions.

Scenario 2
Do you have more than 50 employees and a salary bill of less than £3 million?

  • The government will contribute 90% of your training costs, you will contribute the final 10%.
  • Funding can be used to train up existing staff (including graduates), or to recruit apprentices of any age.
  • You may be eligible for a cash payment towards the training.

summerhouse-training-courses-gloucester Download Our Free Employer Guide

Enter your details below and download our 2017 Apprenticeship Funding, Levy and the Future Employers Guide.

11 + 7 =

summerhouse-training-courses-gloucester How Can Summerhouse Training Help?

Employers must choose a training provider to facilitate the learning required by their apprentices in order for them to gain their qualification and access funding.

Summerhouse Training is a family run private training provider with over 30 years’ experience in delivering quality training and accredited qualifications.

Our mission is recognising that everyone has the Potential to Develop and Achieve (PDA) and that this is a continuous upward cycle of achievement for many of us.

Recognised with an Ofsted Outstanding grade 1 three times running you can be sure to receive the highest quality of training, service and support for your own PDA.

We have a team of funding experts on hand to provide you with assistance that are able to answer any questions you may have about funding the levy and the future of apprenticeships and other training.

GET IN TOUCH WITH THE SUMMERHOUSE TRAINING TEAM TODAY

summerhouse-training-courses-gloucester SUMMERHOUSE COURSES YOU MAY BE INTERESTED IN

Share This