Companies confused by the Apprenticeship Levy – Time is running out to access your Apprenticeship Levy Training Funds
According to a recent study by The British Chambers of Commerce (BCC) and Middlesex University one in four businesses still do not know how the Apprenticeship Levy works. To add to the confusion employers have only 24 months in which to use their unused levy funds before they are transferred into a general apprenticeship funding pot for other companies (levy paying and non-levy paying) to gain access to them.
The Apprenticeship Levy was announced by the Government in 2015’s Autumn Statement to create and fund 3 million apprenticeships by 2020.
From April last year public and private sector employers across all industries and sectors including not-for-profit organisations and charities paying more than £3m million a year in wages and salaries pay a 0.5% levy to fund apprenticeships.
Employers in England receive a £15,000 annual training allowance to offset the payment of the levy, which is paid in digital vouchers to use for training apprentices with a recognised training provider.
Companies paying less than £3m million do not have to pay the levy but can still claim apprenticeship funding.
According to the BCC two thirds of companies surveyed who qualified for apprenticeship funding were not using the funds available or were unaware of the scheme’s existence.
If you are in any doubt whatsoever regarding the Apprenticeship Levy please click here to download our Apprenticeship Levy fact sheet or contact our payroll partner, Graeme Sheridan on the details below:
direct dial: 01942 292506
mobile: 07712 679064