The government announced in the 2015 Summer Budget its new initiative to help fund 3 million new apprenticeships by 2020.
That initiative is the Apprenticeship Levy and beginning in April 2017, it will change the way apprenticeships are funded.
The Apprenticeship Levy requires; “All employers operating in the UK, with a pay bill over £3 million each year, to make an investment in apprenticeships”
Starting from April 2017 employers will pay 0.5% of their wage bill to the levy through their PAYE.
It will be applicable to any UK business, in any sector, which has a payroll bill of over £3 million per tax year. It will be deducted monthly and will be taken in any month where your pay bill is above £250,000 and if at the end of the year, your pay bill is less than £3 million, any deductions will be reimbursed.
We’ve developed a Levy calculator to help you see what contributions you may need to make.
We have created an employer’s guide to the Apprenticeship Levy to answer any questions you may have but if you’d like to find out more or discuss how the levy will work for you business, you can speak to one of our account managers. Please complete this form to request an appointment or a call back.