Companies with a wage bill of more than £3 million are required to pay the apprenticeship levy, and some larger SMEs fall into this bracket.

The apprenticeship levy is a payment paid to the HM Revenue and Customs (HMRC) the Pay as You Earn (PAYE) process. Its purpose is to encourage employers to invest in apprenticeship programmes for new and existing staff.

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.

Companies with a wage bill of more than £3 million pay the apprenticeship levy.
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ACCREDITED TO THE MATRIX STANDARD

The matrix Standard is the international quality standard for organisations that deliver information, advice and/or guidance (IAG), either as their sole purpose or as part of their service offering. Roger Chapman, Head of the matrix Service for The Growth Company said: “This is a fantastic achievement for YH and I would like to congratulate the […]

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