The Chancellor of the Exchequer first announced the UK government’s plans for an apprenticeship levy in the 2015 budget.
Its aim is to create three million apprentices by 2020, funded by a levy on larger employers that will raise £3 billion pa. Following its introduction in May 2017 large employers are now becoming aware of its implications.
Who will pay the levy?
The apprenticeship levy is payable by UK employers with payrolls over £3 million pa via PAYE alongside income tax and national insurance at 0.5% of their pay bill. Employers affected can take full advantage of the many benefits of apprenticeships in order to recoup the funds they now have to pay.
What else is new?
Following its introduction in May 2017 large employers have been paying the levy for several months are now becoming more aware of its implications and the opportunities available in training. Changes in the rules for the funding of apprenticeships means that employers now have a digital account, where by issuing a digital voucher they can commission training from a recognized provider like Apprentice Assessments Limited.
What do you need to do?
With a wide variety of apprenticeships available at various levels, employers now have the opportunity to employ an apprentice directly. Apprenticeships are available for entrants into the workforce, or to up skill the existing staff in areas that benefit both the individual and the business.