Apprenticeships and funding are changing read on to find out more, and how it will likely affect you.
As from April 6th 2017 Apprenticeships will be funded by companies engaged in training apprentices making differing levels of contributions towards the delivery cost’s.
From April 6th 2017 any company with an annual wage bill in excess of £3 million will have a levy applied on them by HMRC of 0.5% of their total wage bill, the levy applies to all wages that are subject to Class 1 Secondary National Insurance Contributions, including items such as bonuses and commissions. The Government will however be pay the first £15,000 of any levy payment due. In addition to this £15,000 contribution the Government will also provide a ‘Top Up’ of 10% of the total your company pay’s in levy contributions.
For more information about the Apprenticeship Levy download our guide SPG Apprenticeship Levy Employer Guide
Companies with an annual wage bill of below £3 million do not have to pay the new levy. They do however have to make a contribution of 10% towards the cost of delivering the Apprenticeship programme.
You will pay your 10% contribution over 4 quarterly periods and the payments will be subject to vat. The cost of each different apprenticeship has been set by the Government and we will be able to advise you of costs prior to any training being delivered, or you can find the value of the bands at the following link.
We will work closely with you in order to understand your needs and objectives and work collaboratively with you to produce an Organisational Needs Analysis to address these your needs and provide you with a measurable return on investment.