It is important to fully understand where your business requirements fit into the new scheme and how it will affect the funding and training of your future apprentices.
Depending on the size of your business, the apprenticeship levy will affect you in different ways.
We have summarised some key points below.
- All employers with a payroll bill of over £3 million will be taxed 0.5% on that bill from 6th April 2017.
- The levy you pay will automatically be determined by HMRC’s Real Time Information and calculated on all employee earnings.
- There is a £15,000 funding allowance per year - this applies to all businesses whether you have a payroll of more or less than £3 million.
- Employers that do not pay the levy must contribute 10% of funding towards the cost their apprenticeship training.
- The funding amount will be transferred to a digital account specifically for your business and made available from 1st May 2017.
- You will have up to 24 months to spend the amount accumulated in your digital account.
- Your funding can only be spent on accredited apprenticeship programmes.
The apprenticeship levy scheme is a fantastic opportunity for businesses to obtain additional funding to train and grow apprentices within their business. However, for those not familiar with the new scheme or process, it can seem quite daunting and overwhelming.
We’ve put together a helpful Employer’s Guide to Apprenticeships which is available to download. This useful guide covers essential topics on apprenticeships, including further details on the Apprenticeship Levy.
Download the Employer’s Guide to Apprenticeships
Here at Pearson TQ, we have been consulting with clients on how best to utilise their apprenticeship funding. With years of extensive experience in delivering apprenticeship programmes, to over 3,000 learners, we specialise in delivering a number of professional business apprenticeships in old and new frameworks such as:
- Team Leader/Supervisor Level 3
- Management Level 4
- Customer Services Level 2 & 3
- Contact Centre Level 2 & 3
- Business Admin Level 2 & 3.
Included in our apprenticeship delivery is Functional Skills in Maths, English and where necessary, ICT
Working with our Parent Company Pearson, we are able to provide an End Point Assessment (EPA ) Service. Here we work with the employer to ensure the learner is ready to undertake the EPA. When all parties agree that the learner is ready, we pass them to the Pearson End Point Assessment Organisation, a completely independent service approved by the Skills Funding Agency to conduct the EPA
We are listed on the official apprenticeship provider register under ‘TQ Education & Training’ and our UKPRN is: 10002806.
If you would like to discuss how best to utilise your apprenticeship levy funding or have any other apprenticeship requirements, please feel free to get in touch with us.