No? Well according to the results of a recent City and Guilds poll, you’re in good company with over a third of employers liable to pay the new Levy from April 2017 saying they didn’t even know of its existence. Employers of all sizes will be impacted by the introduction of the Apprenticeship Levy so now’s the time to get your house in order and ready for April’s launch.
From April 2017, UK employers whose annual pay bill exceeds £3 million will be required to pay 0.5% of that annual pay bill towards the cost of apprenticeship training. This new levy, payable to HMRC monthly via the PAYE process, forms part of the Government’s initiative to fund three million new apprenticeships by 2020. The rub for employers who have to pay the levy, is that they will receive an annual allowance of £15,000 to offset against the cost of apprenticeship training, assessment and certification from approved providers.
Employers who will be subject to the Levy have, this week, been encouraged by the Government to register for the online apprenticeship service. This is the online digital system which has been set up to support the Levy and help employers manage the spending of their allowance. If you’ve not registered yet, we suggest you do so to avoid the inevitable surge of activity towards the end of March (and, dare we say it, the odd IT glitch…).
Even if you are not subject to the Levy directly, smaller employers will, from May 2017, have access to the same registers of approved training providers with Government funding available for up to 90% of the training costs, subject to upper limits of relevant funding bands, so it’s worth getting your organisation registered early.
For more information read the Department for Education’s February 2017 guidance or call us on 01904 520160.