Today the government has confirmed the introduction of the Apprenticeship Levy from April 2017. The Levy is 0.5% of payroll costs for those employers with a wage bill of more than £3m. This will be collected by HMRC from April 2017. Following its recent consultation, the Government has confirmed the details of how the Apprenticeship Levy funds can be spent. They have made a few changes to the original proposals including:
- The Levy funds can be spent within 24 months, which has been extended from 18 months
- A number of the existing Apprenticeship Frameworks & new Standards will be uplifted where they are STEM subjects
- There will be additional support for 16 -19-year-olds including an incentive of £1,000 for both the employer and training provider as well as an additional 20% for utilising existing Frameworks to aid the transition to Standards
- The new Standards developed by employers will be funded at a higher level
- Commitment from the Government to fund 90% of the cost of training for non-Levy payers and 100% for 16 -19-year-olds
- Additional payments for those apprentices that come from disadvantaged areas
- Commitment for employers to transfer funds to supply chain in 2018.
Please do not hesitate to contact us for more details regarding these Apprenticeship Levy updates.
Call: 0330 124 3224 or email: firstname.lastname@example.org