Learners on our Higher Apprenticeship programme, are eligible for a student bank...
About the levy
From 6th April 2017 all large UK based employers with a salary bill of over £3 million per annum will have to pay a monthly levy tax. The total annual bill is currently set to 0.5% of your annual salary bill. Your levy bill is calculated on a monthly basis. You will also receive a levy allowance of £15,000 per year, from the Government, to offset against the levy you must pay.
These funds will appear in your digital account and can be used to purchase apprenticeship training to take on apprentices or to upskill your workforce. The Government will also contribute 10% top up to your digital account.
Your levy pot can only be used to purchase apprenticeship training and must be used within 2 years from the month you pay in.
How to calculate your levy pot
Let’s say your annual salary bill is £5.5 million per annum:
- 0.5% of your annual salary bill is = £27,500
- Minus your levy allowance of £15,000 = £12,000
- Your annual levy bill will be £12,000
However, the Government will also top this up by 10%, giving you a total of £13,500 to spend on apprenticeship training per year.
What happens if I do not have enough in my levy pot?
If you have insufficient funds in your levy pot, the Government will contribute 90% of the total monthly payments; you will then have to settle the other 10%.
National insurance and grants
From April 2016, if you employ an apprentice below the age of 25, you will no longer be required to pay employer National Insurance Contributions for them.
You could also be eligible for an AGE grant of £1,500 if you take on an apprentice between the ages of 16-24 years old. Terms and conditions apply.
Why recruit an Apprentice?
- Apprenticeships are a tried and tested way to recruit new staff, re-train or upskill your existing staff, and one in five employers are hiring apprentices to help them through the tough economic climate.
- Apprenticeships can help tackle the skills shortages within the workplace.
- Learning is tailor made to minimise disruption.
- Apprenticeships are a great way of attracting enthusiastic talent with fresh ideas.
- They can be tailored made to specific job roles, making them flexible to your needs of your business.
- Apprenticeships provide you with the skilled workers you need for the future Apprenticeships can help reduce staff turnover by increasing employee satisfaction and loyalty.
- Employers involved within apprenticeships think that apprentices are 15% more valuable than non-apprentices.