The Apprenticeship Levy - what you need to know Why has it been introduced?
There’s a shortage of skilled staff in many areas in the UK, so the levy has been introduced to double the government’s investment in apprenticeships to £2.5bn. Research shows that the better you train your employees the longer they tend to stay, and the more positive the effect they have on your organisation as a whole. Does the Apprenticeship Levy affect my organisation? If your payroll is over £3m a year, then yes. What will it cost? The basic charge is 0.5% of your PAYE wage bill. However there is also a £15,000 levy allowance to pay for apprenticeship training to offset this. Additional funding has just been announced for employers who take on 16-18–year olds, and 19-24 year–olds who were formerly in care or who have an While some are calling it a tax on business, the intention is to get large businesses to take on more apprentices. They can be from outside the organisation, but you can also retrain current employees to take the next step on their career ladder, or to change direction. When does it come into force? The levy takes effect in April 2017, with payments set to begin in May. It is up to employers to notify HMRC each month whether they are required to pay the levy. Education and Health Care Plan. An opportunity, or another expense?
www.gov.uk/government/publications/ apprenticeship-levy-how-it-will-work
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