Yes. You’ll need to pay the levy if all the following apply: If you’re in a joint venture partnership where 2 companies each have a 50% share in a further company, neither company will have overall control. Q&A. For the first month of the tax year: An apprenticeship levy will be introduced in April 2017, despite concerns from retailers about the financial impact it could have on their businesses. SMEs are still subject to the same Apprenticeship funding bands as levy paying employers. All content is available under the Open Government Licence v3.0, except where otherwise stated, When the levy applies in specific sectors, connected to other companies or charities for Employment Allowance, Class 1 secondary National Insurance contributions, Lower Earnings Limit and the Secondary Threshold, How to register and use the apprenticeship service as an employer, Employer National Insurance contributions for apprentices under 25, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, have an annual pay bill of more than £3 million, of employees who are not subject to UK National Insurance contributions legislation, on which Class 1A National Insurance contributions are payable, such as benefits in kind, you become a connected employer (such as by merging with or acquiring another company), the structure of your group of connected companies or connected charities changes (such as by demerging with another company). Qualified Schools has launched the Teaching Apprenticeship Programme to help schools recruit and train new graduates using the apprenticeship levy. This means you have an allowance of £1,250 a month. So if you want a career in these areas – … There’s even an option to get a degree. What happens if an employer’s levy funds don’t cover the full cost of training? You can choose to share the allowance across the franchises you control or across your PAYE schemes. Use a best estimate of all earnings that are subject to Class 1 secondary National Insurance contributions to check if you need to pay the Apprenticeship Levy. Apprenticeships. The apprenticeship levy is aimed at larger businesses For all employers operating in the UK, the levy has been set at 0.5% of all company’s pay bill (payable through PAYE alongside income tax and NI) – but it only applies to those whose wage bill is greater than £3 million pa (this according to government estimates, affects less than 3% of UK business). This replaces the current system which allows employers to choose to pay for the apprenticeship training they want. In addition, 20% of the cost of the Apprenticeship will be held back and taken from your Digital Apprenticeship Service (DAS) online account at the end of the Apprenticeship. Because the cost is spread over the length of the programme, Apprenticeships are much more affordable than you might think. There are hundreds of apprenticeships to choose from. NHS trusts and other health service bodies (such as Scottish Health Boards, Welsh Local Health Boards and Health and Social Care Trusts in Northern Ireland) are considered to be companies and therefore have to follow the connected companies rules. QA: Your organisation's partner for tech and business apprenticeships If you're an employer in Scotland who already has apprenticeship programmes in your organisation, apprenticeship funding will continue to be administered by Skills Development Scotland through contracted learning providers and direct employer contracts. This represents a rare opportunity to reshape the role Apprenticeships play in delivering skills to the UK economy. The Apprenticeship Levy was initiated by the UK government in April 2017, for all employers paying a wage bill of more than £3 million per year. Annette Allmark, Director of Strategic Policy at People 1 st, explains why retailers should not fear the Apprenticeship Levy, but embrace it.. The upper limit of the funding band also caps the maximum price that the government will ‘co-invest’ if an employer does not pay the Apprenticeship Levy or has insufficient funds to pay for the number of Apprenticeships they want to use. Report any changes to the Apprenticeship Levy as a result of changes to your pay bill on your next EPS. your annual pay bill (including any connected companies or charities) in the previous tax year was more than £3 million, you think your annual pay bill (including any connected companies or charities) for the tax year will be more than £3 million, if your annual pay bill (including any connected companies or charities) unexpectedly increases to more than £3 million - start reporting when this happens, annual Apprenticeship Levy allowance you’ve allocated to that, Apprenticeship Levy you owe to date in the current tax year, check your estimated pay bill against the actual figures for the tax year, you supply labour (including subcontractors) to a client, you pay Class 1 secondary National Insurance contributions on the earnings of those workers, your pay bill exceeds £3 million (including any connected companies or charities). Contact HMRC if you have any questions about Apprenticeship Levy. Yes. They cannot pay for Apprentices’ wages, travel or subsidiary costs, managerial costs, work placements, traineeships or the costs of setting up an Apprenticeship programme. Are there extra incentives for employees with less than 50 members of staff? You cannot change your share of the allowance during the tax year. Making the most of the Apprenticeship Levy. They’ll need to check if they’re connected to another employer at the start of the next tax year to work out their allowance for the following year. Levy funds don’t last forever – don’t lose out. All UK employers with annual salary bills of more than £3 million now pay an apprenticeship levy. You’ll have an annual allowance of £15,000 for all of the franchises under your control. The Apprenticeship Levy is a new tax that will take effect in April 2017. The Apprenticeship Levy puts employers at the centre of a new initiative which aims to deliver, economy relevant, high quality, Apprenticeship Programmes. What can Apprenticeship Levy funds pay for? Public bodies each get a full Apprenticeship Levy allowance as they are not considered to be connected companies. Training Companies – Helping Employers and Individuals, Apprenticeship Training Providers in London. Where the allowance has been allocated across connected companies or charities you cannot change the allocation of the allowance at the end of the tax year. The Apprenticeship Levy is set at 0.5% of your total payroll and is collected monthly via PAYE. Therefore, you must decide what proportion of the levy allowance each employer in the group will be entitled to. The reason the government introduced the Apprenticeship Levy was to fund the promised three million new apprenticeships by 2020, according to a report in the Independent. Report your Apprenticeship Levy each month using your employer payment summary (EPS) and include the amount of the: You do not need to report Apprenticeship Levy on your EPS if you have not had to pay it in the current tax year. Can employers transfer their levy to other employers? jobs@findapprenticeships.co.uk The government also meets all of the costs for employing Apprentices aged 19-24 from a disadvantaged background or with additional learning needs. Northumbria University. However, each business is different and circumstances will vary. Multi-academy trusts will get a single annual allowance of £15,000. The Apprenticeship Levy is designed to create a new fund that will pay for the training of three million apprentices in the UK by 2020. EXAMPLE: Calculating what you have to pay, An employer with an annual wage bill of £5m, Offset allowance of £15,000 (£25,000-£15,000) = £10,000, Annual levy payment = £10,000 (£833.33 per month). If you find errors in your total annual pay bill at the end of the tax year, you must submit an extra EPS with the correct Apprenticeship Levy for the full tax year and pay what you owe. Divide your Apprenticeship Levy allowance by 12. Don’t worry we won’t send you spam or share your email address with anyone. Learn more about the benefits of an apprenticeship. In the budget of July 2015, the Chancellor announced that the government would introduce an Apprentice Levy for large employers to fund the Apprenticeship programme in the UK. There is no cost to you as a degree apprentice. The maximum cost will depend upon which one of the 15 funding bands the Apprenticeship you want to use falls into. QA Education Magazine, essential guide to purchasing services and products for head teachers and decision makers in schools, academies, and education establishments across the UK For example, funds that entered your account in July 2020 will expire in July 2022. It affects all UK organisations with a PAYE wage bill of £3m or more. If you’re connected to another employer, you may have to pay the levy if your pay bill is less than £3 million. The Apprenticeship Levy - use it OR lose it! Here's the Apprenticeship Levy, explained – if you’re thinking of taking on an apprentice, find out if your business will need to pay. An apprenticeship is the recognised way people are trained in a craft trade or profession. For those aged over 19 they will pay for 95% of the cost – the rest has to be met by you. The levy, which was introduced by sections 98 to 121 of the Finance Act 2016, will require Alternatively, please call Skills Training UK’s dedicated employer helpline on 0800 612 6224 or email levy@skillstraininguk.com. We are the UK’s leading tech apprenticeship provider, supporting over 7,000 apprenticeships. The levy allowance operates on a monthly basis and accumulates over the year. If you haven’t done so already, you can register online with the Education and Skills Funding Agency (ESFA) at www.gov.uk/guidance/manage-apprenticeship-funds. Employers that pay the levy in England receive a 10% top-up from government. The Levy applies to all UK employers, and employers with an annual ‘pay bill’ of £3 million or more will have to pay the Levy. Any funds that are not used expire 24 months after they enter the account. The main craft trades and professions have been designated by SOLAS and come within the scope of the Statutory Apprenticeship system, which is organised by SOLAS in co-operation with the Department of Further and Higher, Research, Innovation and Science, employers and unions. This page answers some of the more common questions about the Apprenticeship Levy. When your business is paying the apprenticeship levy it makes sense to make use of the funds. Filter the results Keywords. In the current (2018/19) tax year it is payable by all employers with an annual pay bill of more than £3 million at a rate of 0.5% of their total pay bill. You’ll need to submit an EPS each month using these estimated figures. If you are an SME with less than 50 employees, then the government meets the full cost for Apprentices aged 18 and under. Yes. From 6 April 2017, you’ll need to tell HMRC how much Apprenticeship Levy you owe each month: If you’ve started paying Apprenticeship Levy, you’ll need to continue reporting it until the end of the tax year even if your annual pay bill turns out to be less than £3 million. This must be with an approved training provider (such as Skills Training UK) and a registered end-point assessment organisation. If you wold like to know how Skills Training UK can help your SME manage its Apprenticeships funds, please click here. As an employer, you’ll have to pay Apprenticeship Levy each month from 6 April 2017 if you: Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions such as wages, bonuses and commissions. How much you’ll have available to spend on apprentices. Our apprentices aren’t just college leavers we are also able to facilitate career changes through apprenticeship schemes helping us to diversify our talent pool and create an always learning culture. You can still look for training using tools on the DAS. The Apprenticeship Levy is a UK tax on employers which can be used to fund apprenticeship training. Get a full-time job, training, and proper qualifications. From 2019 you will have to pay for the cost of training through the new Digital Apprenticeship Service (DAS) online account, where you can recruit up to ten apprentices. Skills Training UK’s Apprenticeship Consultancy Service can help allocate this allowance – ensuring you receive maximum return on investment and make best use of the funds available. Create an account to manage apprenticeships You need to create or sign in to an apprenticeship account, then you'll be able to get funding to pay for apprenticeship training and assessment costs.. You’ll use your account to: get apprenticeship funding; find and save apprenticeships Employer contact form only. Instead, you pay just 5% toward the cost of the Apprenticeship and the government will pay the remaining 95%. Apprenticeship Levy is charged at 0.5% of your annual pay bill. The government will pay 95% of the additional costs (up to the maximum of the relevant funding band) - with you as the employer ‘co-investing’ 5%. What are the additional financial incentives for employing an Apprentice? Download our Apprenticeship guides for Levy paying employers and non-Levy paying employers here. We’ll send you a link to a feedback form. The employer for faith schools will be the local authority if the school is voluntary-controlled, otherwise it will be the governing body. FindApprenticeships.co.uk is the UK's leading website to find an apprenticeship job. Short lived companies such as special purpose vehicles will have to pay the levy if they’re liable for Class 1 secondary National Insurance contributions. We use cookies to collect information about how you use GOV.UK. We use this information to make the website work as well as possible and improve government services. Degree Apprenticeships are fully funded by the Apprenticeship Levy through your employer. Apprenticeship Levy 2017 Q + A 1) What is the Apprenticeship Levy? What age do Apprentices have to be – can levy funds be used for existing employees? Any funds you don’t spend on apprenticeship programmes will expire after 24 months; for example, funds paid in May 2017 expired in May 2019. What happens if you are in a group of companies? Revised apprenticeship standards means you can use funding from the apprenticeship levy to offer an approved apprenticeship scheme in your business. Apprenticeship Levy payments are a deductible expense for Corporation Tax. They did not provide any detail on the scheme, so this paper sets out some of the key What about employers who don’t pay the Apprenticeship Levy? Connected companies or charities will each need to tell HMRC how much Apprenticeship Levy they owe. Employers that meet this criterion are now required to pay 0.5% of their payroll each month as a levy tax. There is an apprenticeship levy calculator of sorts, you can make a funding estimate using this link. Apprenticeships Solutions is an Education and Skills Funding Agency accredited Apprenticeship Training Agency (or ATA) that offers employers a fully managed Apprenticeship service: On 6 April 2017, the new apprenticeship levy will come into force. Apprenticeships have changed, with new funding arrangements and the introduction of the Apprenticeship Levy. Each day 1,000's of apprenticeship jobs are added to our website from leading employers and apprenticeships training providers from all across the UK.. Help and advice is always available from our Apprenticeship … Employer with a levy pot of £35,000 takes on five apprentices, Total spend by employer = £35,500 (£35,000 + £500), Total contribution from government = £9,500. Employers with an annual wage bill of less than £3m do not pay the Apprenticeship Levy. Please call us on 0800 048 9370 or email levy@skillstraininguk.com. The section about 'how to allocate your allowance' has been updated. Where a group of employers are connected you can only use one £15,000 allowance. This is known as ‘co-investment’. It takes place between the Independent Apprenticeship Assessor and the apprentice. Your payroll is based on the total amount of earnings subject to Class 1 secondary NICs. If you don’t currently have any apprenticeship programmes, this is your opportunity to discover how work-based learning can drive you… The local authority remains legally responsible for payment of the Apprenticeship Levy for schools under their control, even if they’ve delegated responsibility for payroll including payment of Class 1 secondary National Insurance contributions. University of Roehampton. Subtract your levy allowance for the year to date from 0.5% of your total pay bill for the year to date. The first cohort of QA Salesforce professionals will be available from March 2021. “Salesforce is universally recognised as the leading customer relationship management solution and QA is proud to be partnering so closely with Salesforce on this exciting new venture,” commented Srikanth Iyengar, Chief Client Officer at QA. Skills Training UK can help you to manage this process – making clear the full cost of your Apprenticeship, the amount of funds that are available and how much you have to spend every month. To help minimise the risk of funds expiring, the funding works on a first-in, first-out basis, with payments taken from those funds that entered the account first. Connected companies or charities will only have one £15,000 allowance to share between them. An apprenticeship is a modern, hands-on way to train for an exciting new career. The account works on a first-in, first-out basis. The Apprenticeship Levy was announced by the Chancellor in the summer of 2015 budget statement. You must include payments to: Employers who are not connected to another company or charity will have an Apprenticeship Levy allowance of £15,000 each year. As a result, the joint venture would not be connected to any other companies. As an additional incentive during the COVID-19 pandemic, employers are given £2,000 for each new apprentice aged 16-24 who starts their contract of employment between 1 August 2020 and 31 January 2021, or £1,500 for each new apprentice aged 25+. These changes do not apply for services provided through intermediaries such as a personal service company to clients in the private sector. Levy funds can pay for Apprenticeship training and assessment. Please provide your company or organisation details and we will call you back the same working day. For voluntary-aided schools, foundation schools, free schools and academies, the governing body is the employer. Why should employers embrace Traineeships? You can use HMRC’s Basic PAYE Tools to help you work out how much you need to pay. You can change your cookie settings at any time. The apprenticeship levy is a UK tax on employers used to fund apprenticeship training, announced in the July 2015 budget, applicable to all employers with a payroll exceeding £3 million. You cannot carry over any unused allowance into the next tax year. What Are the Benefits of Apprenticeships for Employers? Work out if the government will contribute towards training costs. The 2 companies and the joint venture would therefore each be entitled to their own levy allowance of £15,000. Our aim is to deliver high-level technical, leadership and business skills which transition perfectly into the workplace. At QA, we offer degree apprenticeships in partnership with: Middlesex University. You’ll have to check whether you’re connected to another company or charity at the start of the following tax year. If achieved, this will be a 35% increase compared to the previous five years. In this 2-minute video, apprenticeship expert Dr. Sean McCready explains the apprenticeship levy and how to make it work for your organisation. There is a £15,000 fixed annual allowance that employers can offset against their levy payments. You must continue to apply the levy allowance that was allocated at the beginning of the tax year if, part way through the year: You can decide how you allocate your levy allowance across your connected companies or charities at the start of the next tax year. The apprenticeship levy (levy) is effectively a new tax which will be imposed on certain employers as part of the Government's initiative to fund three million new apprenticeships by 2020. Find out when you have to pay Apprenticeship Levy and how to calculate and report your payments. Search for an apprenticeship standard by title, keyword, job title or reference number to quickly find what you're looking for. So, contact us today levy@skillstraininguk.com to make sure you don’t miss out. 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