Unlock Your Business Potential with the Apprenticeship Levy
Welcome to London Vesta College, your partner in workforce development through the Apprenticeship Levy. Gain insights into this government-introduced scheme and discover how it can transform your business.
Understanding the Apprenticeship Levy
Key Facts About the Levy
- Q: What is the Apprenticeship Levy?
- The Apprenticeship Levy requires all UK employers with a pay bill over £3 million each year to invest in Apprenticeships (equivalent to 0.5% of their annual pay bill).
- Q: Why was the Apprenticeship Levy introduced?
- The objective is to enhance the quality and quantity of Apprenticeships in England, bridging the skills gap in various industries, including tech.
- Q: Does my company have to pay the Apprenticeship Levy?
- The majority of companies won't have to pay due to a £15,000 offset allowance provided annually. For instance, a company with a payroll of £3 million pays nothing because 0.5% x £3 million = £15,000.
- Q: When did the Levy come into effect?
- April 6, 2017
- Q: What defines a payroll?
- Payroll is based on total employee earnings subject to Class 1 secondary NICs, including wages, bonuses, commissions, and pension contributions subject to NICs.
How It Works
- How would my company pay the Apprenticeship Levy?
Calculate, report, and pay it every month to HMRC through the PAYE process alongside tax and NICs.
- What is the £15,000 allowance, and how does it work?
The £15,000 levy allowance is divided monthly, so you only pay when your liability is less than £1,250. Unused allocation money carries over to the next month, maximizing your investment.
- Group Companies and the Levy:
Connected companies can use one £15,000 levy allowance, but this allocation must be decided and notified to HMRC before the tax year begins.
Leveraging the Levy for Your Business
- Advantages for Your Company:
Access a new digital account system, enabling you to pay for training and assessment for Apprentices in England through a voucher system. Find training providers like Just IT to deliver your Apprenticeship program.
- Non-Levy Paying Employers:
Small businesses with under 50 employees don't pay for hiring 16-18 year-old Apprentices, as the government contributes 100% towards the total training cost.
- Using the Levy for Existing Staff:
Fund your Internal Workforce Development Program through the Apprenticeship Levy, provided it aligns with employee learning needs and career progression.
Ready to Transform Your Business?
At London Vesta College, we're committed to helping your business thrive by harnessing the power of the Apprenticeship Levy. To explore how you can make the most of your levy and embark on a journey of upskilling and hiring talent, please complete the form below.
Unlock your business potential with London Vesta College and the Apprenticeship Levy. Together, we build a skilled and empowered workforce.
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