Apprenticeship Levy 2017
The Apprenticeship Levy – what you need to know
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On the 6th April 2017, the Government is changing the way apprenticeships are funded. Those employers (2% of all employers) with an annual wage bill greater than £3 million will automatically become a Levy paying employer. Below are some key facts about the levy.
- Any apprentice who starts their apprenticeship before 1st May 2017 won’t be affected by the changes to the funding
- The way employers access training and assessment for their apprentices will change for all employers sourcing a new apprentice
- Those larger employers (who have an annual wage bill of £3 million or more) will automatically start paying in to the levy from May 2017. Larger employers will invest 0.5% of their total wage bill via the apprenticeship levy (minus a training £15,000 allowance which is deducted from the total wage bill)
- The employer contribution is made up of all those employee earnings which are subject to the Class 1 National Insurance contributions and include earnings such as wages, bonuses, commissions and pension contributions
- Employers with a wage bill less than £3 million pounds per annum will contribute 10% towards the cost of their apprenticeship training, with the Government paying the rest. Employers will pay between £150 and £2,700 depending on the type and level of the apprenticeship
- Levy paying employers will access their apprenticeship training and assessment via the Online Apprenticeship Service account. Here employers will be able to select an apprenticeship, choose the training provider(s) who you want to work with, choose the organisation who will assess your apprentices and post vacancies. Larger employers who are contributing to the levy will also be able to use their online account to set the price agreed with the training provider, pay for your apprenticeship training and assessment and pause/stop payments if your learner takes a gap in learning etc.
- By 2020 all employers will be able to use the online account to pay for training and assessment
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