CIPP Payroll: need to know 2019-20

Chancellor announces change to apprenticeship levy 2 October 2018

At the Conservative Party Conference Philip Hammond announced that large employers will be able to transfer up to 25% of their apprenticeship levy funds to businesses in their supply chain from April next year.

The Chancellor is reported to have said:

“We have heard the concerns about how the apprenticeship levy is working, so today we’ve set out a series of measures to allow firms more flexibility in how the levy is spent. But we know that we may need to do more to ensure that the levy supports the development of the skilled workforce our economy needs. So, in addition to these new flexibilities, we will engage with business on our plans for the long-term operation of the levy, working hand-in-hand with employers to ensure that every young person can fulfil their potential and achieve their dreams.” Increased flexibility was announced earlier in the year in that if an employer who pays the apprenticeship levy does not plan to use all of the funds in their apprenticeship service account, they can make a transfer to another employer to support them in taking on apprentices. Transfers is the first big flexibility HMRC is offering to employers to help make apprenticeships work better for everyone. CIPP comment The levy system has received criticism that it is too complex for smaller businesses to navigate, and not flexible enough as it cannot be used to pay trainees’ travel and accommodation costs. Some companies have labelled the levy as a tax and with the amount of red tape it involves, many businesses just write off the cost, negating the real purpose of the levy.

It will be interesting to see just what is published by government after the Conservative Party Conference as to the detail within the supposed ‘review’. We shall watch developments closely and keep you informed.

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Feedback from employers introduced into apprenticeship service 16 January 2019

Since September 2018 employers using the apprenticeship service have been able to leave feedback about their experiences of working with their training providers.

The feedback received to date is available on Find apprenticeship training or when searching for a specific training provider in the provider search pages. With each round of employer invitations and reviews received, the Education and Skills Funding Agency (EFSA) will build a bigger and better picture of the training providers delivering apprenticeship training. In future, the plan is to make this feedback one of the key metrics in all searches made on the Find apprenticeship training, enabling employers to filter their search results and helping them choose training providers that best suit their business needs.

For more information about the new feedback feature, read the Education and Skills Funding Agency (EFSA) Digital Blog.

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Apprenticeship funding in England 24 May 2019

The Chartered Institute of Payroll Professionals

Payroll: need to know

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