From April 2017 the Apprenticeship Levy will be introduced and will be a levy on UK employers to fund new apprenticeships.
The Levy will only be paid on annual pay bills in excess of £3 million. Each employer will receive an allowance of £15,000 to offset against their Levy payment.
Once an employer has paid the Levy to HRMC they will be able to access funding for apprenticeships through a new digital service account. If an employer doesn't pay the Levy they can still employ an apprentice and can choose the training they would like the apprentice to receive, an approved training provider and an assessment organisation using the register of apprenticeship training providers.
See more information on Apprenticeship funding: how it will work (GOV.UK website) .
Thinking about employing an apprentice?
There are lots of good reasons for you to employ an apprentice:
- Apprentices make a valuable business contribution from day one
- Skills gaps can be closed by apprentices
- Filling vacancies with apprentices makes recruitment easier and reduces costs
- Apprentices can reduce your overall business training costs
- They produce managers and leaders of the future, providing financial return on investment
Find out more about taking on an apprentice