The Apprenticeship Levy comes into force with the new Tax year, so a month away. Based on some recent conversations, it is surprising to find that some people / organisations are either unaware of this change or have not yet decided what actions they will take to adjust to the new approach.
The Apprenticeship Levy will affect organisations:
- With a payroll of £3m +
- That currently take on apprentices
- That want to take on apprentices in the future.
Apprenticeships themselves have evolved over the past few years and that process will continue or gather pace from April.
In short, the Levy works as follows:
- Charge of 0.5% of payroll over £3m collected through employer payroll process
- Money collected paid into an account for that organisation
- Used to pay for your apprenticeship training costs
- Employer pays salary cost
- Funds go to Government coffers if not used
- 90% of cost of any training over-spend met by Government.
There is plenty of detailed information available on the Apprenticeship Levy.
Now Training is helping organisations with how best to use their funds, particularly with regard to upskilling (and any broader impacts of changes made on their overall development framework). We are discussing action plans and solutions with our approved apprenticeship providers and consultants, including Kevin Chard who kindly put this blog together.
If you would like to find out more then please contact us here or call 01920 460 211.