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.
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Taking on an apprentice… £1000 Incentive, Levy and more!
Employers will be entitled to a £1,000 incentive payment for recruiting a 16-18 year old apprentice or 19-24 year old apprentice with an Education, Health and Care (EHC) plan. Funds in employers digital account will expire after 24 months if not used. Further more detailed information for employers can be found at: https://www.gov.uk/guidance/apprenticeship-funding-rules For employers who […]Read More