Apprenticeships are a great way for your businesses, whether large or small, to strengthen your workforce and the apprenticeship levy makes it even easier to expand your team through apprenticeships.
If you’ve ever thought ‘What is the apprenticeship levy?’, then our handy guide explains what you need to know.
The apprenticeship levy is a tax on UK employers with an annual wage bill over £3 million or more each year.
It was introduced in April 2017 as part of the Government’s apprenticeship reforms, and is used to fund apprenticeships, support business productivity and grow quality vocational training and employment.
If you’re a levy-paying business, you’ll manage your levy funds, manage your apprentices and pay your training provider through an account with the government’s Apprenticeship Service.
Remember that our expert team has years of experience within the apprenticeship sector and will be there to guide you through the whole process.
Funding for apprenticeships depends on the size of your business.
If you’re a large business with an annual wage bill of £3million or more, you’ll already be contributing 0.5% of that wage bill towards apprenticeship training costs. This is known as the apprenticeship levy and you have 24 months to use it before it automatically goes back to the Government.
If you’re a business with fewer than 50 employees, you could get 100 per cent of the cost of training paid for by the Government. Small and Medium Enterprises (SMEs) can also access levy gifted funds to pay for apprenticeship training.
This is funding from large employers who have been unable to use some of their apprenticeships contributions. Instead of returning it to the government, they can ‘gift’ up to 25 per cent of this funding for smaller businesses to access and use to train their workforce through apprenticeships.
Trevor Nunes, SPIE UK HR Director, explained why the providers of technical engineering solutions gifted £100k of their unused levy.
We immediately recognised that this was a great opportunity to work with Total People by gifting £100,000 to help develop the next generation of engineers across the built environment.
“These funds will support the attraction and retention of talent in a sector that continues to evolve in support of digital transformation and energy transition.”
You can read more on our dedicated Levy Gifting page.
If your annual wage bill is less than £3million, you are a non-levy employer. If you have fewer than 50 employees, you’ll be eligible for 100% funding for individuals aged 16-18.
Our dedicated Levy Gifting team do all the hard work for you and can help you to access the right funding for your workforce. They can guide you through the entire process and help you every step of the way.
For more information call Beckie on 0161 674 8756 or visit our dedicated page.