The Government has recently outlined some fundamental changes to the way apprenticeships in England are funded. These changes are part of the bid to increase the number of apprenticeships to meet the Governments pledge of 3 Million apprenticeship starts by the end of the current parliament.
Who will pay the Levy?
The levy will apply to both Public and Private employers across all sectors with a payroll bill in excess of £3m a year. The levy will be paid by all UK employers. – The first levy payment will be due in April 2017 and will be paid through: Pay As You Earn (PAYE)
How much do I pay?
The apprenticeship levy will be set at 0.5% of an employer’s wage bill. However, each employer will receive one annual allowance of £15,000 to offset against their levy payment. there will be a connected persons rule, similar to Employment Allowance connected persons rule, so employers who opperate multiple payrolls will only be able to claim one allowance. If this allowance is not used within the 12 month period, the allowance will be lost.
To find out more information relating to the Apprenticeship levy, please visit:
https://www.gov.uk/government/publications/apprenticeship-levy/apprenticeship-levy
