At NCATI we work with large levy-paying businesses and small non-levy paying businesses in all sectors and can help you plan and organise your apprenticeship funding.
If your business has a UK wage bill exceeding £3 million, it must invest in apprenticeships and pay the apprenticeship levy. The great news is, you can use this investment to fund apprenticeship training for both new and current staff.
What is the apprenticeship levy?
The apprenticeship levy is 0.5% of your company’s total annual bill and is payable to the HMRC through the pay as you earn system (PAYE) as a tax:
The levy only applies to the wage bill from £3 million upwards.
You will only pay this tax on the percentage of your workers who are based in England.
You will also receive a 10% government top-up to your total monthly contributions.
How do I access the funds?
After your business has paid its levy bill to HMRC, this tax is then held in a ‘digital fund’ that you can access via an online portal called the Apprenticeship Service.
You can use this service to get apprenticeship funding, find apprenticeships, choose training providers, recruit apprentices and manage apprenticeships you are currently running.
The funds are only available to be spent on apprenticeship training in England, and not other elements such as the apprentices’ wages or travel. The training must also be on an accredited apprenticeship programme from an approved provider, such as NCATI.
Use it or lose it!
The levy was designed to create sustainable funding for apprenticeships, upskilling the country and having a positive impact on the economy. Levy funds are available for a maximum of 24 months from when they were first paid in. If you don’t spend your apprenticeship levy funds within this window, you’ll lose them.
So why not get in touch now and discover how to best invest in tangible skills for your business?
Did you know? Your business may be eligible to obtain 95-100% funding for apprenticeships. If you would like help or advice on apprenticeships for your SME, please get in touch.