The government is committed to increasing the quantity and quality of apprenticeships and has set a target of 3 million new apprentices by 2020. The apprenticeship levy is designed to support the achievement of this ambitious aim and to put employers at the centre of the apprenticeship system.
The Apprenticeship Levy was introduced in April 2017 at a rate of 0.5% of total PAYE to all businesses with an annual payroll bill of over £3m.
Employers can claim this back to fund apprenticeship training, or lose the funds. The levy is payable monthly from April 2017 onwards through Pay As You Earn (PAYE) and is payable alongside Income Tax and National Insurance.
Individual employers’ funding will then be made available to them via a new digital account, through which employers will be able to pay for training for apprentices via a recognised training provider, such as MiddletonMurray.
If you don’t have enough funds in your account to pay for training in a particular month, the government will share the remaining cost of training through co-investment.
With ‘co-investment’, you will pay 5% of the outstanding balance for that month, and the government will pay the remaining 95% up to the funding band maximum.
One of the really important aspects of the levy is that from the moment the money is deposited into the employer’s fund, it’s then only there for 24 months so with the levy having already started on 6th April 2017, it is imperative that businesses formulate their Apprenticeship Levy plan as soon as possible and this is where MiddletonMurray can help.