Who will the Levy apply to?
The Levy will be calculated on 0.5% of the payroll bill of all employees across the whole of the UK including Scotland, Wales and Northern Ireland. Employers will not pay the first £15k of the Levy. Therefore, the payroll bill must be £3m before an employer starts paying. That does mean that employers with around 150 reasonably paid employees will pay the Apprenticeship Levy.
When will employers pay?
The Apprenticeship Levy started to be collected from April 2017. It is collected on a monthly basis, based on ‘live’ HMRC payroll data. It will include all directly employed employees but not contractors. It will be applied to ‘groups’ of companies but not franchisees. It will be HMRC that determines the rules and does the collection of the Levy.
How will the Levy work?
The employer will pay the tax and their account will be credited with that amount. They will then be able to pass their voucher to Aspire Training Team to draw the money down for the cost of the apprenticeship training.
The government has said that it will ‘top-up’ the funds by 10%. Therefore if a company pays £30,000 Levy they will have £33,000 in their virtual account to spend on Apprenticeship frameworks.
How much can be drawn down for each Apprentice?
Each Apprenticeship programme is allocated to a band of funding. Here at Aspire Training Team, we can advise you on the level of funding for the programme you select.
Who can be trained under the Apprenticeship System?
Both existing employees and new recruits of any age, geographical location or prior attained qualifications will be eligible for an Apprenticeship. Aspire Training Team can help you understand how an Apprenticeship programme can meet your training needs and find an apprentice that’s right for your business.
Will there be any incentive to recruit 16 – 19 year olds?
There will be an incentive for the employers if they recruit a young person aged 16-19. This will be a minimum of £1000 and there will also be additional funding to pay for their training.
How will the system work for non-Levy payers?
Smaller employers that recruit 16-19 year olds will not have to make any contribution to the Apprentice’s training. Larger employers will contribute 10% of the cost of the Apprenticeship training. The government will contribute the rest of the cost (90%). The payments will be made directly to the training provider.
Which training providers will be able to deliver the training for employers?
In the Levy based system the government is supporting the concept of ‘registered’ training provider and, as such, are operating a register of providers. There is likely to be a set of criteria that providers must pass to be considered as a registered provider which will include Ofsted grade and track record. Aspire Training Team have been rated Outstanding by Ofsted and received an outstanding Matrix report.
We currently have Apprentices working for us but what will happen from next year?
Apprentices employed prior to May 2017 will be funded by the government under the old arrangements until the end of their programme. Apprentices employed after May 2017 will be funded through the Levy payments. If you have any questions or concerns about managing this transition, please do not hesitate to contact us.
Once we have spent our Levy grant can we recruit more Apprentices?
Yes, the government has announced that employers can employ as many Apprentices as they want but once the Levy pot has been spent they must contribute 10% of the total cost of delivery. In other words, the company will pay 10% and the Government will contribute the other 90% of the funding which will be drawn down by a registered training provider such as Aspire Training Team.
We currently employ Apprentices and Aspire provide all the recruitment support.
Will that continue?
Yes, we will continue to provide a full recruitment service to all our Levy and non-levy customers. We will work with our employers to establish the recruitment speciﬁcations, the apprenticeship proﬁles and manage the complete recruitment process through to employment.
Can we still claim money if someone leaves after a long period
of being on an apprenticeship programme?
Yes, the funding can be claimed monthly as someone progresses through a programme and this money does not have to be refunded if they leave. However, there will be an amount of funding held back which will only be paid if the apprentices get to the end of the programme. This is likely to be no more than 20% of the total funding.