Why Was The Levy Introduced?
The Apprenticeship Levy was introduced to help raise £3 billion per year, to meet a target of three million new ‘high quality’ Apprenticeships by 2020.
Who Has To Pay The Apprenticeship Levy?
Any company with a pay bill over £3 million will be liable to pay the levy. All companies receive an allowance of £15,000 for the levy, equivalent to 0.5% of a £3 million pay roll.
Example One: Employer of 250 employees, each with a gross salary of £20,000
Pay bill: 250 x £20,000 = £5,000,000
Levy sum: 0.5% x £5,000,000 = £25,000
Allowance: £25,000 - £15,000
Annual Levy Payment = £10,000
Example Two: Employer of 100 employees, each with a gross salary of £20,000
Pay bill: 100 x £20,000 = £2,000,000
Levy sum: 0.5% x £2,000,000 = £10,000
Allowance: £10,000 - £15,000
Annual Levy Payment = £0
How Will I Claim The Training From My Levy Payments?
Employers in England will be able to reclaim their contributions and choose training providers via a voucher system, through the new Digital Apprenticeship Service.
What Are The Benefits Of The Levy For Employers?
- Apprenticeship content will be exactly what you need
- Ensure you are getting value on your investment when working with your training provider
- Access to higher and degree level Apprenticeships
- Ensure that at the end of the Apprenticeship your Apprentice is competent in the role you need them to do You supply labour (including subcontractors) to a client
What Do I Need To Do Now?
Total Excellence Centre are here to help and advise you on the Apprenticeship Levy and support you with the Management Apprenticeships and Standards for your business.
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