What is the apprenticeship levy?
In the 2015 Autumn Statement, George Osborne announced a new apprenticeship levy on employers to help fund employer apprenticeship schemes and reach the target of delivering three million apprenticeships by 2020.
The levy will be introduced in April 2017 at a rate of 0.5 per cent of an employer’s payroll.
All employers will receive an allowance of £15,000 to offset against payment of the levy. This effectively means that the levy will only be payable on payroll in excess of £3 million per year.
So what does this mean to you, the employer?
The levy can be used to up skill existing employees or recruit & train new employees working towards an approved Apprenticeship Standard.
Smaller companies can still take advantage of available Government funding, which is likely to include an employer contribution.
Lots of organisations affected by the levy currently have very small or no provision for apprenticeships and even those with existing programmes will, in many cases, need to expand them in order to reap the benefits of their levy.
There is only 12 months to go before the levy comes into force, so now is the right time for firms to create and grow their Apprenticeship scheme. By taking advantage of the current government funded apprenticeship programme, firms can minimise the risks associated with the levy and maximise their opportunity.
How can NWTC help you?
We can help you minimise the risks and maximise the opportunities associated with the Apprenticeship levy.
NWTC can help you:
- Define your Apprentice and skills workforce strategy
- Attract, Recruit & Match the right Apprentices for you
- Create your own personalised Apprenticeship programme
Latest news/updates: Draft Clause released – Feb 2016
The Government published draft clauses regarding the Apprenticeship in early February, you can view these documents here:
- Apprenticeship Levy: Draft Legislation
- Explanatory note Clauses 1 to 23
- Apprenticeship Levy: HMRC Policy Paper
- Apprenticeship Levy FAQ’s
Update: May 2016
Find out more
If you would like a free consultation on how the Levy would affect you and the options available, please provide us with your information or contact us to book an appointment at email@example.com using the #Levy as the subject title or call us on 0151 523 0808.