Bolton College
Apprenticeship Levy and Reforms
Danie Ryder p12+13 Professional Cookery Apprentice at Nicks Restaurant

 

The Apprenticeship landscape has been changing for several years, with powers increasingly shifting from training providers to employers.

The reforms give employers more control over designing, choosing and paying for apprenticeship training. In April 2017, the Government is introducing the Apprenticeship Levy. This will change the way Apprenticeships in England are funded, and it will help to support the Government’s target of 3 million Apprenticeship starts by 2020.

Only employers operating in the UK with an annual payroll of £3 million or over will have to pay the levy, which is calculated as 0.5% of an employer’s payroll as reported to HMRC.

 

There is to be an allowance of £15,000 to offset against the Apprenticeship Levy bill as shown in the examples below:

Example 1: An employer with an annual wage bill of £4 million:

Levy sum: 0.5% x £4,000,000 = £20,000
Allowance sum: £20,000 - £15,000 = £5,000
Employer will pay a £5,000 annual Apprenticeship Levy.

 

Example 2: An employer with an annual wage bill of £10 million:

Levy sum: 0.5% x £10,000,000 = £50,000
Allowance sum: £50,000 - £15,000 = £35,000
Employer will pay a £35,000 annual Apprenticeship Levy.

 

The Apprenticeship Levy will be paid into an online Digital Account Services (DAS) on a monthly basis and will benefit from a government funded top-up of 10%. This means that every £1 entering the Digital Account will increase in value to £1.10.

It is important to remember that some aspects of the Apprenticeship Levy are currently undergoing re-consultation. See below our Apprenticeship levy information booklet for more details. 

If you have any queries regarding the Apprenticeship Levy or reforms, or if you would like to find out how we can help your business to grow, please contact our Business Development Team on 01204 482 036 or email business@boltoncc.ac.uk