The apprenticeship levy was introduced as part of the government’s plan to create 3 million new apprenticeships in England by 2020 and to encourage employers to invest in apprentices. The government are encouraging employers to take on apprentices to help businesses to grow and for people to develop industry-related skills.
The levy is paid and collected through HMRC by larger businesses who can claim back their levy contribution to pay for training apprentices. The amount of levy funding employers have to spend is available on the Government’s online Apprenticeship Service and the employers’ Digital Service Account.
CCCT can help you understand the apprenticeship levy and maximise funding incentives available. We offer a one-stop service to navigate the funding arrangements. We make sure that your workforce
UK employers with an annual wage bill of over £3 million are required to invest in apprenticeships. The levy funds can be used for approved apprenticeship programmes that meet employer-approved apprenticeship standards.
The training can be used for existing staff or new recruits who meet the eligibility requirements.
The levy rate is 0.5% of the total wages bill for employers (in all sectors and industries) who have a total employee pay bill of more than £3 million a year.
Use the Apprenticeship Levy calculator to estimate your contributions.
The government is encouraging employers to support young people in quality apprenticeships by providing additional funding incentives:
If you contribute to the levy, you will be able to see the funds you have available for apprenticeships online. To do this you will need to register for or use your current Government Gateway account. Log in to your account and add the details for the PAYE scheme you will use for your apprenticeship. You will then be able to manage your apprenticeship by adding apprentices’ names and quickly and easily authorise training provider payments.
Every apprenticeship standard and framework is placed in a funding band, which sets the maximum amount of funding that can be used towards training costs over the length of the apprenticeship. The same funding bands will apply to all employers paying for apprenticeships.
To find out more about how much you will be able to spend on each apprenticeship and how the apprenticeship levy can help your business, read the following information:
So many businesses both large and small, are making the most of the apprenticeship levy. Hiring an apprentice can make a real difference to your business and training the next generation of employees for your industry.
Let us guide you through the apprenticeship levy. We’re here to answer all your questions about the apprenticeship levy and start your apprenticeship recruitment. Call us on 0207 391 6400 or email firstname.lastname@example.org