Apprenticeship Levy and funding changes - are you ready?

Apprenticeship Levy and funding changes - are you ready?

The Apprenticeship Levy will be introduced in April 2017

Rochdale Training can help you understand the cost implications for your company and answer your questions:

Will our company have to pay the levy or not?

Levy Payers

• How much will we pay? 
• How will the levy be collected? 

Non-Levy Payers

• I won’t pay the levy; how will this affect my business?
• What mandatory cash contributions are there?

Recruit your apprentice now and SAVE ON COSTS

Contact Mark Whittaker for more details:
E: mwhittaker@rochdaletraining.co.uk
T: 01706 631417
M: 07432 471668
W: www.rochdaletraining.co.uk/employer-information

How Rochdale Training can help you

• An opportunity, not just an expense
• Maximise your levy payment and get out more than you put in
• Recruit now and reduce costs
• Contact us about training for existing staff
• Free Apprenticeship Levy cost check service

Why use Rochdale Training?

• Free recruitment screening and matching service
• Ofsted Outstanding for teaching, training and learning (at last full inspection 2013)
• Success rates 20% above national average
• 50 years’ experience.
• Rochdale training will help Levy Payers with the creation of a Digital Service Apprenticeship (DAS) account
• Free advice, consultation and training needs analysis

The better you train your staff, the longer they’ll stay

Key Facts

• The Apprenticeship Levy will be introduced in April 2017
• Some employers will pay an Apprenticeship Levy and there will be changes to funding for Apprenticeship training for all employers
• Current government proposals (announced 12 August 2016) suggest the levy will apply on an employer’s pay bill of over £3m – so there will be Levy payers and Non-Levy payers

Levy Payers

• Charged at 0.5% of annual pay bill
• Levy can be used to upskill existing employees or recruit and train new employees working towards an approved apprenticeship standard.
• You will have a levy allowance of £15,000 per year to offset against the levy you must pay. This means you will only pay the levy if your pay bill exceeds £3 million in a given year. You will pay the levy to HMRC through the PAYE process.

Examples of what you will pay

• An employer with an annual pay bill of £5,000,000
  
  Levy sum: 0.5% x £5,000,000 = £25,000
  
  Subtracting levy allowance: £25,000 - £15,000 = £10,000 annual levy payment

The Digital Apprenticeship Service (DAS) account

Once you have declared the levy to HMRC you will be able to access funding for apprenticeships through a new DAS account. You will be able to use this to pay for training and assessment for apprentices in England. The service will also help you find training providers to help you develop and deliver your apprenticeship programme. Top-ups - the government will apply a 10% top-up to the funds you have for spending on apprenticeship training in England.

Non Levy Payers

• Government funding still available with mandatory 10% employers contributions – the government will pay the remainder
• Employers with fewer than 50 staff will not have to pay costs of 16 – 18-year-old apprentices

Incentives (contact us for details 01706 631417)

• £1,000 - £2,000 extra support for 16 – 18-year-old apprentices
• £1,500 age grant if you employ an apprentice aged 16 – 24* (*eligibility criteria apply)

Contact Mark Whittaker for more details:

E: mwhittaker@rochdaletraining.co.uk
T: 01706 631417
M: 07432 471668
W: www.rochdaletraining.co.uk/employer-information

Helpful links

• Gov.Uk – Apprenticeship Levy - how it will work https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work
• SFA– Estimate my apprenticeship funding
  https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/