The new Apprenticeship Levy will be implemented from April 2017. The levy is one of the governments initiatives which will be replacing the current funding system, and will be used to help meet the government's target of three million apprenticeships by 2020. The Apprenticeship Levy will affect large companies with an annual payroll of over £3million. It will be payable through the PAYE system alongside Income Tax and National Insurance.
Click here to access the Skills Funding Agency's Levy Calculator - Skills Funding Agency's Levy Calculator
Once a company has paid the levy to HM Revenue and Customs, they will be given a digital apprenticeship account where they will access their funding through the new Digital Apprenticeship Service portal. This portal will provide the company with a digital voucher to spend on their apprenticeship programme.
On top of the levy paid by the company the government will apply a 10% top-up to the funds to spend on apprenticeship training in the UK. The top-up will be applied monthly, at the same time the funds enter your account. The aim for this top-up is to incentivise employers who make use of their levy allowance by giving them more back in return. Any unspent levy funds in the digital account will expire after 24 months.
The government are introducing more changes to the way apprenticeships are funded. To find out more click here.
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