Any funds that are not used expire 24 months after they enter the account. Levy funds will expire 24 months after they enter your digital account unless you spend them on Apprenticeship training. If a school becomes a voluntary-aided school, foundation school, free school or academy part way through a tax year, the academy’s governing body will be responsible for the Apprenticeship Levy from this point and get a full allowance of £15,000. For other maintained schools, the local authority is the employer. QA specialises in digital and tech and IT apprenticeships in the UK. Annette Allmark, Director of Strategic Policy at People 1 st, explains why retailers should not fear the Apprenticeship Levy, but embrace it.. It was a response to an apparent reduction in the rate at which employers invest in the training of their staff. This means you have an allowance of £1,250 a month. The allowance reduces the amount of Apprenticeship Levy you have to pay by £15,000 across the year. An apprenticeship is the recognised way people are trained in a craft trade or profession. If you wold like to know how Skills Training UK can help your SME manage its Apprenticeships funds, please click here. This must be with an approved training provider (such as Skills Training UK) and a registered end-point assessment organisation. jobs@findapprenticeships.co.uk All UK employers with annual salary bills of more than £3 million now pay an apprenticeship levy. The Apprenticeship Levy puts employers at the centre of a new initiative which aims to deliver, economy relevant, high quality, Apprenticeship Programmes. I agree to www.skillstraininguk.com collecting and storing personal data as outlined in our. Yes. There is an apprenticeship levy calculator of sorts, you can make a funding estimate using this link. The levy, which was introduced by sections 98 to 121 of the Finance Act 2016, will require 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. This means that only employers with an annual pay bill of more than £3 million will pay the levy. 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). Apprenticeship Levy 2017 Q + A 1) What is the Apprenticeship Levy? If achieved, this will be a 35% increase compared to the previous five years. QA: Your organisation's partner for tech and business apprenticeships Because the cost is spread over the length of the programme, Apprenticeships are much more affordable than you might think. 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. How do non-levy paying employers pay for Apprenticeships training? Northumbria University. Yes. So, contact us today levy@skillstraininguk.com to make sure you don’t miss out. This is known as ‘co-investment’. Levy payers can claim back GBP8,000 per Accounting Technician Level 4 apprentice, or GBP21,000 per Professional Accountant Level 7 apprentice, Public bodies each get a full Apprenticeship Levy allowance as they are not considered to be connected companies. Find out when you have to pay Apprenticeship Levy and how to calculate and report your payments. Revised apprenticeship standards means you can use funding from the apprenticeship levy to offer an approved apprenticeship scheme in your business. I agree to www.skillstraininguk.com collecting and storing personal data as outlined in our Privacy Policy. This means that you don’t have to meet the full cost of the Apprenticeship at the start of the training. The money is paid in two stages – at three and 12 months. You cannot change your share of the allowance during the tax year. Earnings include any remuneration coming from employment, such as wages, bonuses, commissions and pension contributions that you pay NICs on but not benefits in kind. If you start or stop being an employer part way through the tax year you can use your full annual Apprenticeship Levy allowance against the amount of the levy that you owe. 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