The government has introduced the apprenticeship levy to help fund three million new apprenticeships by 2020. The levy has been applied to all industries in the UK. As a result, this applies to the largest UK employers at a rate of 0.5 per cent of their wage bill. Being collected through PAYE. Learn more about The Apprenticeship Levy below.
Employers in the UK with an annual wage bill of £3 million and over will now need to pay the levy. This includes the public sector, charities and educational providers, academies, and universities.
It is estimated that 2% of all employers are engaged in government-funded apprenticeships. You will now be required to contribute via PAYE. In addition, the same 2% will also receive a 10% top-up each month from the government based on their monthly contribution.
Non-levy paying employers must make a 5% contribution (direct to the provider of choice and not via PAYE) for each apprentice’s training. The government will provide a 95% balance.
This new online portal is now accessible to all levy payers, AS lists all of the employer’s funds available to spend on apprenticeship training.
The employer will select their provider through AS from a list of approved apprenticeship providers.
If you are a levy-paying employer and are yet to register, follow the link below to get started:Manage Apprenticeship Funds
Access for non-paying levy employers will roll out in 2018.
You can learn more about how to register and use the apprenticeship service as an employer, along with further information from the GOV.UK website. Click the button below to visit:GOV.UK Information about Apprenticeships
Still unsure if your organisation will be liable for the new apprenticeship levy tax? If you are, do you know how much you will have to contribute via PAYE?
The new apprenticeship reforms have given them exciting employer incentives. To find out more information, please visit our Funding & Costs page