The Apprenticeship Levy – how it affects your business | Walsall College
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The Apprenticeship Levy – how it affects your business

What is the Apprenticeship Levy for?

Through the Levy, the Government has committed to an additional 3 million apprenticeship starts by 2020. Effective from April 2017, the Levy is a mandatory tax for employers who are eligible to pay in to the Levy, regardless of whether they currently train apprentices or not.

The Levy - Our FREE consultation service

Walsall College is perfectly positioned to help you understand how the Apprenticeship Levy affects training funding for new or existing staff.

Complete the form on this page or call Sue Fitzgerald, Apprenticeship Levy Manager on 01922 663530.

How does the Levy affect your business?

Working closely with various government agencies, Walsall College is perfectly placed to help provide you with up-to-date advice on how the Levy impacts your particular business.

No matter what size your business is, we can help you understand if you need to contribute to the Levy pot.

Our simple table below outlines what category you fall into and what contribution you might need to make:

Levy paying companies

If your payroll bill exceeds £3m, your business is classed as a levy payer and you will have to pay. The Levy is charged at 0.5% of your total pay bill and is deducted from your PAYE. There is also an Apprenticeship Levy allowance of £15,000 for employers who are not connected to another company or charity. Connected companies or charities will have £15,000 allowance to share between them.

Example: An employer with an annual pay bill of £5 million:

Levy sum: 0.5% x £5,000,000 = £25,000

Allowance: £25,000 – £15,000 = £10,000 annual payment

One of the benefits of the scheme is that it places control of apprenticeship funding into the hands of the employer. This allows you to invest in your current apprentices, take on more and upskill existing staff to help secure the future of your organisation.

As long as you are offering recognised apprenticeship training, typically bought in from a college or independent training provider, you can take advantage of the allowance.

Take advantage of our FREE expert consultation service, designed to help businesses get the most from the Apprenticeship Levy. Complete the form on this page or call Sue Fitzgerald, Apprenticeship Levy Manager on 01922 663530

Non-Levy paying companies with more than 50 employees

If you have a payroll bill of less than £3m and over 50 employees, you will be co-funded for apprenticeship training. The government will pay 90% of the cost of apprenticeship training, whilst you will need to pay the remaining 10% to the training provider. The training provider will then request the remaining 90% from the government.

As well as taking on new apprentices, this funding can also be put towards training existing staff, if the apprenticeship training is relevant to their job and will assist in their career development.

For more information, complete the form on this page or call our Business Training Solutions team on 01922 651129

Non-Levy paying companies with less than 50 employees

Non-Levy paying companies with less than 50 employees won’t have to make a contribution towards the cost of training and assessment of any apprentices aged 16-18, as the government will pay 100% of the costs. This also applies to apprentices aged 19-24 who have been in care or have a Local Authority Education, Health and Care plan.

For training that applies to anyone else that is 19 or over, you will pay 10% of the cost of training, whilst the government will pay the remaining 90%.

For more information, complete the form on this page or call our Business Training Solutions team on 01922 651129

All of this information can be found in our brochure  The Apprenticeship Levy and You

Additional payments for apprenticeships

An employer will receive a payment of £1000 towards the additional cost associated with apprenticeship training if, at the start of the apprenticeship, the apprentice is:

  • aged between 16 and 18 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
  • aged 19-24 and has been in care or has a Local Authority Education, Health and Care plan.

For further details on support accessing this funding  click here, complete the form below, call us on 01922 651129, or email businesstrainingsolutions@walsallcollege.ac.uk

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