Why is the apprenticeship levy being introduced?
As part of the government’s plans to improve the UK’s productivity, a target has been set for 3 million apprenticeships to start in England by 2020. The apprenticeship levy is being introduced to help fund this goal.
How much will my organisation pay?
If your annual UK wage bill is more than £3 million, you pay at a rate of 0.5% of your UK wage bill, minus the government’s allowance of £15,000.
How will levy payers make apprenticeship levy payments?
Levy payments will be made on a monthly basis through Pay As You Earn (PAYE).
What can levy payers spend their payments on?
Apprenticeship training and assessments. It cannot be used for wages, travel expenses, traineeships or any other costs associated with setting up an apprenticeship programme.
What is the Digital Apprenticeship Service?
The Digital Apprenticeship Service (DAS) is a new online portal for employers to manage their levy payments, access funds and search for training providers. You will be able to register for an account from February 2017.
What happens if Ievy payers don’t spend their digital vouchers?
Any un-spent money in your digital account will be removed after 24 months. This will be used to fund apprenticeship training for smaller non-levy paying organisations.
What happens if levy payers want to spend more on apprenticeships than they have in their account?
Once all of your digital vouchers have been spent, you can still take on extra apprentices. The government will fund 90%.of the cost of the apprentice, you will have to contribute just 10%.
Is there an age limit for an apprentice?
No. The minimum age is 16.
Can a part-time member of staff do an apprenticeship?
Yes, so long as they are working more than 16 hours per week The duration of the apprenticeship will be lengthened accordingly.
What happens if some of a levy payers UK employees work outside of England?
If only a percentage of your UK staff work in England, you will receive the same percentage of your levy payments back into your DAS account. E.g. if your levy payment is £10,000 and 80% of your staff work in England, you will receive £8,000 in your Digital Apprenticeship Service account, plus a 10% top-up from the government.
Will employers who already pay into an existing levy e.g. CITB be exempt from the apprenticeship levy?