The Levy is paid by employers with a pay bill of more than £3M each year, with 0.5% of their entire pay bill being collected by HMRC through the PAYE alongside tax and NICs.
Levy-paying employers have an allowance of £15K per year to offset against the Levy, which they will be able to access through their Apprenticeship Service account. Those employers who are committed to Apprenticeship training will be able to get out more than they pay in, through a top-up of additional funding to their digital accounts.
Those employers who are not required to pay the Levy will still be able to benefit from Apprenticeship training, under a co-investment scheme – paying 10% towards the cost of training, the rest being paid for by government. There are also extra contributions for employing apprentices who are aged 16 to 18 or 19 to 24 year olds that have a local authority education and health care plan.
The College’s dedicated Business Development team is highly knowledgeable in the new reforms, including the Levy, and offers a Levy Management Service to support your business. Call 01278 655111 or email email@example.com to find out more.