Apprenticeship Levy comes into force
In the Spending review and autumn statement of 2015, the Chancellor of the Exchequer confirmed that an apprenticeship levy would be imposed on all large employers in all industry sectors, for the purpose of raising money to meet the cost of apprenticeship training. From 6 April 2017, all employers with an annual wage bill of more than £3m will be required to pay this apprenticeship levy.
The levy will be charged at 0.5% of the amount by which the wage bill exceeds £3m. Employers will receive an allowance of £15,000 to offset against the payment of the levy. All employers will be able to access funding for apprenticeships, including those not required to pay the levy. They will access funding through a new digital apprenticeship service account, and use this money to pay for training and assessment for apprentices.
Employers who pay the levy will be able to use the amount they paid into the levy (plus a 10% Government top up) to pay for apprentice training and assessment. Employers who are not required to pay the levy can obtain 90% of their apprenticeship training and assessment costs from the Government (with the employer paying the remaining 10%).
The levy will be collected on a monthly basis through PAYE and employers will need to keep records for a certain period – where these are not kept, a financial penalty will apply.
Should you require any further information please contact the HR Consultancy team at International Workplace at email@example.com