Have you heard about the apprenticeship levy?
At University of Staffordshire, we are on a mission to demystify the apprenticeship levy and how to access funding to make sure employers get the most out of it. If you want to find out more, contact our apprenticeship experts who will guide you through the whole process.
Levy paying employers
As of the 6 April 2017, it became mandatory for employers with a pay bill over £3 million a year to pay the apprenticeship levy. Levy paying employers report and pay their levy to HMRC through the PAYE process. An employer’s pay bill is made up of the total amount employees’ earnings that is subject to Class 1 National Insurance contributions, such as:
- wages
- bonuses
- Commissions
- pension contributions
The levy is charged at a rate of 0.5% of your annual pay bill. You will have a £15,000 allowance and the government will top up your account with a 10% bonus.
You can use the funds in your digital account to pay for apprenticeships at all levels to develop your current workforce and attract new talent.
You are already paying into a levy pot which can only be spent on training your workforce with apprenticeships – the more employees you have on your payroll the more you will be paying in, so make the most of the money you’re investing.
Non-levy paying employers?
Employers with a pay bill of less than £3 million a year do not pay into the apprenticeship levy. At least 95% of non-levy-paying employers’ apprenticeship training and assessment costs in England is paid for by the government.
As of January 2020, employers who do not pay the apprenticeship levy are able to reserve funding for apprenticeships in advance of recruitment or an offer of an apprenticeship being made to an existing employee.
Being able to reserve funding ensures that employers can plan, and that funds will be available to pay for the training from the point the apprenticeship starts.
More information can be found on the gov.uk website.
Access the apprenticeship levy
If you are looking for answers to your burning questions about the apprenticeship levy and how you can access its funds, then our expert apprenticeships team can give you all the information you need; all we need is 30 minutes of your time. Just long enough to give you the Higher and Degree Apprenticeship masterclass and help you to get your business 'ready for the levy'.