Apprenticeship Levy-April 2017

The Apprenticeship Levy will be a levy on UK businesses to fund new apprenticeships, however it will only apply to any businesses with an annual pay bill of more than £3 million. If your organisation has a pay bill less than £3m it will not have to pay the Levy. Companies with an annual pay bill of more than £3 million bill will have to pay 0.5% of their wage bill towards the Levy, and will only be able to claim this money back through training apprentices. Payments will be collected monthly by HM Revenue and Customs (HMRC) through Pay as You Earn (PAYE), alongside tax and National Insurance. Businesses will get a £15,000 fixed annual allowance to offset against the levy payment. An example: If you have a £3million pay bill, you’d have a levy bill of £15,000 (at 0.5% of employer pay bill). The allowance is offset against this so your levy payment is £0.00. 

For further information please go to: https://www.gov.uk/government/publications/apprenticeship-levy/apprenticeship-levy

Digital Apprenticeship Service

The money will be collected by HMRC and will be accessed via a new Digital Apprenticeship Service (DAS) account. In addition to the amount paid into the account by eligible employers, the Government will apply a 10 per cent top up on funds, meaning that for every £1 paid in, the employer gets £1.10 to spend. On your Digital Apprenticeship Service (DAS) account you’ll be able to see training providers, chose appropriate Apprenticeship training courses and find candidates for your programmes. When an apprenticeship has started, monthly payments will be automatically taken from your digital account and sent to the training provider.

For more information on registering and managing your DAS account please go to: https://www.gov.uk/guidance/manage-apprenticeship-funds

Register of apprenticeship training providers:

The register of apprenticeship training providers shows the organisations that are approved to deliver apprenticeship training to employers. Organisations that are listed on the RoATP have been through an application process with the SFA that considers due diligence, capability, quality and financial health to assess their capability to deliver high-quality apprenticeship training.

To view the Register, please follow the below link: https://roatp.apprenticeships.sfa.bis.gov.uk/download

Spending Levy funds 

Businesses will have 24 months to spend their funds ('vouchers') before they expire. Businesses can spend levy funds on apprentice training for either existing staff or new recruits, but they can only be used towards the costs of Apprenticeship training. They cannot be used on other associated costs such as apprentice wages, travel and subsidiary costs or the costs of setting up an Apprenticeship programme

For full details of what you can and can’t pay for with funds from your apprenticeship service account please go to: https://www.gov.uk/government/publications/apprenticeship-funding-and-performance-management-rules-2017-to-2018