It’s been revealed that up to 900 large firms could be subject to paying double levy payments when the apprenticeship levy is introduced in April 2017, due to payments they are already making to the Construction Industry Training Board (CITB).
Business across all sectors with a payroll of more than £3million per year will be required to pay 0.5% of their total wage bill into the apprenticeship levy from April next year. These funds will then be used towards training for apprenticeships. Those in the construction industry are already paying a similar amount towards the current CITB levy, meaning from next year they could be paying £30,000 a year in training levies.
The two levies will run simultaneously for a year while the CITB runs a consultation on a new format for the levy for their industry, expected to be brought in during the spring of 2018. During this 12 month period however, it’s proposed that a transition package be introduced to coincide with the launch of the apprenticeship levy in to ease the blow for those required to pay twice. This is likely to be in the form of enhanced grant rates for those affected and while it’s not confirmed yet, the possible rebates could total up the £38million, which the CITB will fund from efficiency savings following their restructure, as well as bank deposits.
The confirmed details on the transition package are due to be announced in early July.
If you have any queries about the apprenticeship levy which will be launching in April 2017, or you’re an employer considering hiring an apprentice, you can contact Aspire Training Team on 01202 551553 or email email@example.com.