The new Apprenticeship Levy comes into effect in April 2017 with companies seeing their first payment being taken in May 2017. The Apprenticeship Levy will affect all large organisations with an annual payroll of over £3million, regardless of whether they already currently employ Apprentices or not. . It will be payable by employers in the UK at the rate of 0.5% of the payroll cost through PAYE alongside Income Tax and National Insurance.
THE LEVY EXPLAINED
Employers will not pay the first £15,000 of the Levy, which effectively means it will only be payable on payrolls more than £3 million per year.
All employers, whether they are Levy paying or not, will be financially supported by the government with regards to Apprenticeship training. If your payroll is under £3 million, 3aaa Apprenticeships can help you manage your Apprenticeship training requirements.
Public sector organisations will also pay the Apprenticeship Levy if their payroll meets the above criteria and, in addition, 2.32% of their workforce must be Apprentices. 3aaa Apprenticeships can put a Project Manager in your business or organisation to help you manage your Apprenticeship training strategy. Find out more about our Project Managers by contacting our Levy Management Team on 0330 124 3224.
There are also additional government changes that will come into effect with the Apprenticeship Levy including, funding bands. This means there will be no stipulation regarding the age or location of the Apprentice as of April 2017.