We have been asked to produce a short apprentice levy information which is now available. This is just a very brief overview of the apprenticeship levy and we do encourage companies to speak to us to get more detail.
Apprenticeship Levy Co-Investment
From talking to a number of businesses, there still seems to some confusion about the apprenticeship co-investment. We did write an article recently, ‘Apprenticeship Levy Government Co-Investment Explained‘ which sets out the rules regarding this. The confusion seems Levy values and monthly payments. Businesses will know roughly what they are going to pay into their Levy for the year. This amount though will be paid on a monthly basis with your PAYE. If your Levy payment for the month is, for instance, £8000 and the cost of training for the month is £10,000 the remaining £2000 is co-invested – you pay £200 and the government pays £1800. Don’t forget though that all existing funds in the Levy account need to be used up first. If you have been paying and have not been using the Levy then you will already have a pot of cash to work with. So if you have 6 months of credit at £8000 per month then you will already have £48,000 ready to use. Once that has been used and your monthly payments no longer also meet the costs of delivery then that is the point at which co-investment kicks in.
If you would like more information about this or would like us to put together a very simple example for your business then please speak to the team and we will provide you with the necessary guidance.