Is your business ready for the Apprenticeship Levy?
From April 2017, both public and private sector employers* who have an employee payroll of more than £3million will be required to pay a levy of 0.5% on the payroll bill (less an allowance of £15,000). This will be paid to HMRC through PAYE and will be held in the employer’s digital account. For every £1 paid in by the employer, the government will contribute 10 pence. Once funds are paid into the account the employer can access these for 24 months. They are available to spend on accredited apprenticeship programmes for training and assessment. However, it’s worth nothing that the funds cannot be used for additional expenses such as wages or overhead costs.
If your business has a payroll of under £3million, the government will continue to contribute towards apprenticeships using a system of co-investment.
You can find out more about the apprenticeship levy in our guide: “Your Guide to the Apprenticeship Levy.”
If you would like advice on the apprenticeship levy or any other employment law matters, please contact our Employment team on 0161 475 7676.
*Please note that this change applies to businesses in England. Separate measures will be considered for Scotland, Wales and Northern Ireland.