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Apprenticeship Levy - What is it and how will it impact your business?

Posted on Wed 25th Jan, 2017

Apprenticeship Levy - What is it and how will it impact your business? Image

It could now cost you less to take on an Apprentice!

Over the next decade the UK needs millions of new technical and professional skilled workers, the Government has identified Apprenticeships as key to this. To fund the additional Apprenticeships the Government is introducing a levy.

The levy comes into effect in May 2017, all employers need to be aware of the changes, and for some employers the impact will be high as you will automatically pay the levy.

Employers will be classified as Non-Levy or Levy Paying.

 

To help explain the changes we have created a short guide, please click here to download.

Non-Levy Payer

If you have a wage bill under £3million you will be classified as a Non-Levy Payer and will be required to pay 10% towards the cost of training, the remaining 90% will be paid for by the Government.

If you employ a 16-18 year old and have less than 50 employees your contribution will be £0 – so it will still be free.

Levy Payer

If you have a wage bill over £3million you will be classed as a Levy Payer and will contribute 0.5% of your wage bill, less an allowance of £15,000.

Below are some examples of how this could work:

Wage Bill

Wage Bill

Wage Bill

£15m

£7.5m

£3.75m

Levy Calculation

(Wage bill x 0.5%)

Levy Calculation

(Wage bill x 0.5%)

Levy Calculation

(Wage bill x 0.5%)

£75,000.00

£37,500.00

£18,750.00

Amount to Pay

(Levy - £15k)

Amount to Pay

(Levy - £15k)

Amount to Pay

(Levy - £15k)

£60,000.00

£22,500.00

£3,750.00

Total Levy Funds

Total Levy Funds

Total Levy Funds

(Levy + 10% top-up)

(Levy + 10% top-up)

(Levy + 10% top-up)

£66,000.00

£24,750.00

£4,125.00

To find out more about the levy and the impact it will have on your business contact the ATL Team now:

Email: enquiries@atl-training.co.uk

Telephone: 01709 365515

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