The Government has made a promise to create 3 million new apprentices by 2020. The Apprenticeship Levy comes into action in April 2017 as part of this promise.
At Yorkshire Apprentice, we have a set of some tips on how to make the most out of the Apprenticeship Levy:
Firstly, you need to find out if you are a Levy paying business and how the Levy will affect your business.
Only 2% of UK employers are above the Levy paying threshold. Any business that has a salary and wage bill of over £3m a year will have to pay. This includes charities, public sector and not-for-profit organisations.
If you are applicable, you need to work out how much your contribution will be.
The levy contribution has been set at 0.5% of your annual salary and wage bill if it is greater than £3 million. The employers will receive a £15,000 allowance from the Government to offset against the Levy.
All contributions will differ, as the contribution payment is dependent on the exact figure of your businesses salary and wage bill.
Start thinking of what you can spend the Levy money on.
Don’t wait until April to prepare! Start thinking about how you can make the most out of your Apprenticeship Levy now.
You could invest your Levy in hiring new recruits or upskilling your existing staff to help them gain a nationally recognised qualification. The Levy will give your business and employees long-term development.
What have you got to loose?
Either way, if you decide not to use the Levy, you will still have to pay it! So it makes the most sense to use up your Levy contribution to get the best value of your investment!
Questions, queries and advice!
We are here to help you! If you have any questions in regards to the Levy or are seeking some advice, please contact us and we will help you make the most of your investment!
Call us on 01423 740440 or email [email protected]