Don’t get Caught Out
If you haven’t yet heard, in April 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers. The broad principle is that large employers with a pay bill in excess of £3m will be required to pay what is being called a levy.
The levy will be charged at a rate of 0.5% of the employers annual pay bill. Firms will receive an allowance of £15,000 to offset against this levy payment.
There is a danger that larger companies will not maximise their levy because either they can’t take on enough apprentices in any one year or they don’t appreciate how to create value through it. An inadvertent effect could be that the levy becomes a tax on companies that don’t take apprentices, or, by not being able to take enough on in any one year, they can’t reclaim the training funds. If this is the case money will get redirected to other sectors that are more apprenticeship friendly.
Contact us now so we can put in place our ‘Levy Ready Plan’
- We will show you what the impact will be on your organisation.
- We will investigate fully funded provisions that you can access prior to the levy taking affect, such as the Business Improvement Technique.
- We will match apprenticeship delivery to the requirements of your business ensuring that you use your quota of apprentices.
- We will feed back on what your return on this investment will be.
- We will continue to work with you to assess the implications each financial year.
Read more about the Levy here - from the Government’s perspective
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