On 12th August 2016, the UK government agreed to stick to the original timescales of implementing the Apprenticeship Levy to help fund Apprenticeships in England. They have chosen to ignore calls from major business groups for the Levy to be delayed due to the financial uncertainty caused by the recent BREXIT vote.
The recently appointed Apprenticeship and Skills Minister, Robert Halfon commented;
“We need to make sure people of all ages and backgrounds have a chance to get on in life. Apprenticeships give young people – especially those from disadvantaged backgrounds – a ladder of opportunity. That’s why we continue to work tirelessly to deliver the skills our country needs. The apprenticeship levy is absolutely crucial to this.”
The levy, once implemented in April 2017, will require employers with a payroll bill of over £3 million per year to pay a levy charged at a rate of 0.5% of their annual payroll bill. This will be paid through HRMC’s Pay as You Earn (PAYE) process.
There is a tool now available for employers to use which will clarify if the company needs to pay the Apprenticeship Levy and if so, how much needs to be paid. https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/
For more information and to keep up to date about the Apprenticeship Levy, please visit the Department for Education here: http://tinyurl.com/ApprenticeshipLevyGOV