Apprenticeships deliver the whole package of on-the-job training and occupationally-relevant qualifications that develop the skills, knowledge, and expertise of your employees.
Companies with an annual wage bill of over £3 million will have to pay an apprenticeship levy of 0.5% directly to HMRC through the PAYE process. The amount you have available to spend is calculated on a monthly basis as follows:
Your levy is 0.5% of your gross annual payroll, less a £15,000 allowance. The balance is then divided by 12 and rounded down to the nearest pound. This gives a monthly levy payment which is then multiplied by the % of your employees living in England. The government tops that up by 10%, which gives you the final monthly amount. Employers can use this allowance for apprenticeship training through an approved training provider such as Cambridge Regional College.
Employers who are not eligible to pay the apprenticeship levy will have to pay 5% towards the cost of apprenticeship training. This can be paid in three ways:
• Upfront payment
• Instalments over the first three months
• Or, if over £900, instalment payments across 12 months
This applies to companies with less than 50 employees taking a 16-18-year-old apprentice. Apprenticeship training is fully funded for these companies which means there is no fee to you as an employer.
Need further help understanding the Apprenticehip Levy or wish to find out how you can share Apprenticeship Levy with other campanies, then visit www.levymatch.com to access our Apprenticeship Levy Match services.