So, how much is the Apprenticeship Levy? It’s 0.5% of a company’s payroll, with every employer receiving an allowance of £15,000 to offset against the amount they owe HMRC.
How much do you pay?
For an employer with an annual salary cost of £5M, the levy sum is 0.5% x £5M = £25,000, minus the £15,000 levy allowance = £10,000 annual levy payment.
Looking to fund apprenticeship training?
The apprenticeship levy which is paid by companies can be accessed by those same businesses to fund their apprenticeship training – to train new employees and to upskill existing employees.
The Skills Funding Agency will also apply a 10% top-up to the funds in your account, giving every levy paying employer 10% extra. That means for every £1 that enters your digital account,, you get £1.10 to spend on apprenticeship training. You will also qualify for £1000 for each 16-18 apprentice you recruit and your training provider partner can also draw down funding for Functional Skills and any additional support required.
If you’d like some help in making sure you maximise on the benefits to your business, YH Training will provide your business with the help and assistance it needs completely free of charge.
What's going on?
2019 – Changes to the apprenticeship funding system
introducing the apprenticeship levy introducing the apprenticeship service – this is an online service that allows employers to choose and pay for apprenticeship training more easily introducing a new ‘co-investment’ rate to support employers who don’t pay the levy(‘co-investment’ is when employers and government share the cost of training and assessing apprentices) Apprenticeship Levy If you’re an employer with […]Read More