The apprenticeship levy which was introduced in May 2017 has affected the way apprenticeships are funded. If you are an employer with a wage bill of more than 3 Million you will be required to automatically pay into the Levy and utilise training for your employees or hire of new apprentices.
The apprenticeship Levy is charged at 0.5% of your annual pay bill. You will need to use an approved provider like NTG Training Ltd to deliver the apprenticeships of your choice. Register of approved apprenticeship training providers.
If you are an employer with a wage bill of less than 3 Million but employ more than 50, then you will be required to contribute 10% towards training costs, 90% of these costs will be covered by the Skills Funding agency.
If you are an employer with a wage bill of less than 3 Million and employ less than 50, then you will still be required to contribute 10% towards training costs, but only for employees who are aged 19+. Employee aged 16-18 (or 19-24 with an Education, Health & Care plan) are funded 100% by the Skills Funding Agency.
Whether you are a levy payer or not, there is an incentive of £1,000 * per apprentice aged 16-18 (or 19-24 with an Education, Health & Care plan) only.
* For Apprenticeships starting after the 1st May 2017. Two Equal Payments: £500 at 90 Days / £500 on Completion. There is no cap on the amount of times you can apply for the incentive payment. One payment per apprentice.
Join the government’s plans to create 3 Million apprenticeships and give an apprentice an opportunity within your business. We offer a complimentary apprenticeship recruitment service and have some fantastic candidates enthusiastically ready to kick start their career with you. Contact us today for more information on 01244 680 689 or email us at [email protected]