What is the Apprenticeships Levy?
The purpose of the levy is to encourage employers to invest in apprenticeship programmes and to raise additional funds to improve the quality and quantity of apprenticeships.
The Apprenticeship Levy is a payment that is collected from large employers in both the public and the private sectors. 该款项通过PAYE报税表支付给英国税务海关总署.
The Apprenticeship Levy paid by businesses can be accessed by those same businesses to fund apprenticeship training in their organisation.
征费起征点按工资单规模计算. Businesses with a wage bill of more than £3 million will be required to pay the levy.
How much is the levy?
The levy amount is 0.5% of a company’s payroll, 每个雇主都有15英镑的津贴,以抵消他们所欠的金额. That’s why it only applies to businesses with a payroll over £3m.
To explain; a business with a payroll of £6m would have an Apprenticeship Levy payable as follows:
£6,000,000 (payroll) x 0.5% (levy amount) - £30,000
£15,000 Less Levy allowance
= £15,000 Levy amount payable
When will it be payable?
Businesses have been subject to the levy payment since May 2017 and it is payable monthly, via HMRC PAYE returns.
Where does the money go?
All businesses that pay the levy will be able to access their contribution in their online digital apprenticeship service account. This account can be used to pay for apprenticeships training and assessment in England.
As levy payments go out monthly, businesses will start to see funds appear in their digital account a few working days later.
Businesses are required to to set up their account with the digital apprenticeship service.
Yes. As the money goes into the digital account, it gains a 10% top up from the government. That means for every £1 that enters a business’ digital account it gets an additional 10 pence.
以600万英镑的工资业务为例, if a business pays £15,000 in levy payments throughout the year which is gradually appearing in their digital apprenticeship account, 他们还将额外获得1英镑,政府一年也给了500, so they have £16,500 to pay for apprenticeship training and assessment in their digital account.
Is there a time limit on spending the funds raised in a digital account?
Yes. Funds that businesses accrue in their online digital apprenticeship account will expire 18 months after they appear unless they are spent on apprenticeship training. This applies to the top-ups too.
Will smaller businesses be able to access the digital apprenticeship service?
Yes. Whether you pay the levy or not, the arrival of the digital apprenticeship service is relevant as it will be available to help all businesses do the following:
- choose the training provider or providers you want to deliver training
- choose an assessment organisation
- post apprenticeship vacancies
And by 2020, all employers will be able to use the digital apprenticeship service to pay for the training and assessment for apprenticeships.
So how will non levy payers pay for apprenticeship training?
Running parallel with the introduction of the Levy there is also a new funding system for businesses that run apprenticeship programmes. The objective of the new system is to increase businesses’ purchasing power and control over apprenticeship training.
首先，你要选择你想要的学徒生涯, 以及你希望提供培训的机构, and you will agree a cost for the training with the provider. The government will ask you to make a 5% contribution to the overall cost of training and government will pay the rest.
The government will ask you to pay this directly to the provider and you may be able to spread it over the lifetime of the apprenticeship, to an agreed schedule. As both you and the government make a payment, it’s called ‘co-investment’. The government will pay their part of the training costs direct to the provider.
In some situations, these additional incentives will mean that 100% of training costs to the employer are covered.
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