Whether you want to upskill your employees or hire an apprentice, QA can help you. Public bodies each get a full Apprenticeship Levy allowance as they are not considered to be connected companies. In the meantime, you pay your provider directly. Here's the Apprenticeship Levy, explained – if you’re thinking of taking on an apprentice, find out if your business will need to pay. Contact Us. QA specialises in digital and tech and IT apprenticeships in the UK. Divide your full annual allowance by 12 and multiply by the number of months since the start of the tax year. Apprenticeship Levy 2017 Q + A 1) What is the Apprenticeship Levy? For example, funds that entered your account in July 2020 will expire in July 2022. Subtract the amount of the levy you’ve paid in the year to date. Levy funds will expire 24 months after they enter your digital account unless you spend them on Apprenticeship training. The government will pay 95% of the additional costs (up to the maximum of the relevant funding band) - with you as the employer ‘co-investing’ 5%. However, each business is different and circumstances will vary. For other maintained schools, the local authority is the employer. You’ll need to pay the levy if all the following apply: If you’re in a joint venture partnership where 2 companies each have a 50% share in a further company, neither company will have overall control. As an additional incentive during the COVID-19 pandemic, employers are given £2,000 for each new apprentice aged 16-24 who starts their contract of employment between 1 August 2020 and 31 January 2021, or £1,500 for each new apprentice aged 25+. If an employer pays the Apprenticeship Levy but their funds don’t cover the full cost of the Apprenticeship training they would like to buy, then additional support is available. Therefore, you must decide what proportion of the levy allowance each employer in the group will be entitled to. This represents a rare opportunity to reshape the role Apprenticeships play in delivering skills to the UK economy. This is because the public sector employer will be liable to pay the Class 1 National Insurance contributions for workers engaged through such intermediaries from April 2017. University of Roehampton. Our apprentices aren’t just college leavers we are also able to facilitate career changes through apprenticeship schemes helping us to diversify our talent pool and create an always learning culture. For voluntary-aided schools, foundation schools, free schools and academies, the governing body is the employer. There is an apprenticeship levy calculator of sorts, you can make a funding estimate using this link. Please call us on 0800 048 9370 or email levy@skillstraininguk.com. Introduction. The Education Skills Funding Agency (ESFA) have advised that employers must have an … Apprenticeships have changed, with new funding arrangements and the introduction of the Apprenticeship Levy. What age do Apprentices have to be – can levy funds be used for existing employees? The Apprenticeship Levy was initiated by the UK government in April 2017, for all employers paying a wage bill of more than £3 million per year. Are you ready for the Apprenticeship Levy? The Apprenticeship Levy is a UK tax on employers which can be used to fund apprenticeship training. Qualified Schools has launched the Teaching Apprenticeship Programme to help schools recruit and train new graduates using the apprenticeship levy. If a school becomes a voluntary-aided school, foundation school, free school or academy part way through a tax year, the academy’s governing body will be responsible for the Apprenticeship Levy from this point and get a full allowance of £15,000. You’ll have an annual allowance of £15,000 for all of the franchises under your control. If you run a modified PAYE scheme you’ll need to account for National Insurance contributions as usual. The apprenticeship levy has been a fantastic opportunity for us to grow our own digital talent and future proof ourselves against the well reported, nationwide, digital skills shortage. Report any changes to the Apprenticeship Levy as a result of changes to your pay bill on your next EPS. Can employers transfer their levy to other employers? We use this information to make the website work as well as possible and improve government services. The reason the government introduced the Apprenticeship Levy was to fund the promised three million new apprenticeships by 2020, according to a report in the Independent. In the budget of July 2015, the Chancellor announced that the government would introduce an Apprentice Levy for large employers to fund the Apprenticeship programme in the UK. This page answers some of the more common questions about the Apprenticeship Levy. These bands determine the maximum amount that can be spent on each Apprenticeship. Learn more about the benefits of an apprenticeship. In addition, 20% of the cost of the Apprenticeship will be held back and taken from your Digital Apprenticeship Service (DAS) online account at the end of the Apprenticeship. Through that, you’ll be able to: See how much you’ll pay in the levy. Degree Apprenticeships are fully funded by the Apprenticeship Levy through your employer. There is no cost to you as a degree apprentice. Subtract this figure from 0.5% of your monthly pay bill. If you are an SME with less than 50 employees, then the government meets the full cost for Apprentices aged 18 and under. At QA, we offer degree apprenticeships in partnership with: Middlesex University. You’ll still need to pay Apprenticeship Levy even if you already contribute to an industry-wide training levy arrangement, for example the Construction Industry Training Board Levy. If you don’t use them, you will lose them. Earnings include any remuneration coming from employment, such as wages, bonuses, commissions and pension contributions that you pay NICs on but not benefits in kind. The Apprenticeship Levy is designed to create a new fund that will pay for the training of three million apprentices in the UK by 2020. Get a full-time job, training, and proper qualifications. Short lived companies such as special purpose vehicles will have to pay the levy if they’re liable for Class 1 secondary National Insurance contributions. An apprenticeship is the recognised way people are trained in a craft trade or profession. Employers are also given an extra £1,000 for taking on an Apprentice aged 16-18. Any unused allowance can be carried forward into the next month within the same tax year. Work out if the government will contribute towards training costs. To help us improve GOV.UK, we’d like to know more about your visit today. Setting up How to choose the right apprenticeship training. The levy allowance operates on a monthly basis and accumulates over the year. You can still look for training using tools on the DAS. What Are the Benefits of Apprenticeships for Employers? Don’t worry we won’t send you spam or share your email address with anyone. From 6 April 2017, you’ll need to tell HMRC how much Apprenticeship Levy you owe each month: If you’ve started paying Apprenticeship Levy, you’ll need to continue reporting it until the end of the tax year even if your annual pay bill turns out to be less than £3 million. The Apprenticeship Levy was announced by the Chancellor in the summer of 2015 budget statement. Apprenticeships. If you haven’t done so already, you can register online with the Education and Skills Funding Agency (ESFA) at www.gov.uk/guidance/manage-apprenticeship-funds. Levy payers can claim back GBP8,000 per Accounting Technician Level 4 apprentice, or GBP21,000 per Professional Accountant Level 7 apprentice, Annette Allmark, Director of Strategic Policy at People 1 st, explains why retailers should not fear the Apprenticeship Levy, but embrace it.. You can change your cookie settings at any time. . What happens if you are in a group of companies? The levy will be charged at a rate of 0.5% of an employer’s paybill. To find out more about our Apprenticeship Consultancy Service, please click here. I agree to www.skillstraininguk.com collecting and storing personal data as outlined in our Privacy Policy. If you are an employer with multiple PAYE schemes and you do not use your full Apprenticeship Levy allowance during the year, you can change the allocation at the end of the tax year, to offset any unused allowance against another of your schemes. You’ll have to check whether you’re connected to another company or charity at the start of the following tax year. This is known as ‘co-investment’. What happens if an employer’s levy funds don’t cover the full cost of training? Yes. This means you have an allowance of £1,250 a month. The local authority remains legally responsible for payment of the Apprenticeship Levy for schools under their control, even if they’ve delegated responsibility for payroll including payment of Class 1 secondary National Insurance contributions. Search the Apprenticeship Standards. What about employers who don’t pay the Apprenticeship Levy? The first cohort of QA Salesforce professionals will be available from March 2021. “Salesforce is universally recognised as the leading customer relationship management solution and QA is proud to be partnering so closely with Salesforce on this exciting new venture,” commented Srikanth Iyengar, Chief Client Officer at QA. To help minimise the risk of funds expiring, the funding works on a first-in, first-out basis, with payments taken from those funds that entered the account first. Background . The government also meets all of the costs for employing Apprentices aged 19-24 from a disadvantaged background or with additional learning needs. The Apprenticeship Levy applies to both public and private UK employers across all sectors with an annual payroll of more than £3m. Other types of joint ventures will get a full £15,000 allowance if they’ve been set up part way through the tax year. The levy, which was introduced by sections 98 to 121 of the Finance Act 2016, will require Each local authority has an annual allowance of £15,000. From 2019 you will have to pay for the cost of training through the new Digital Apprenticeship Service (DAS) online account, where you can recruit up to ten apprentices. Why should employers embrace Traineeships? Contact HMRC if you have any questions about Apprenticeship Levy. The employer for faith schools will be the local authority if the school is voluntary-controlled, otherwise it will be the governing body. The Apprenticeship Levy - use it OR lose it! This is also available for Apprentices aged 19-24 with additional learning needs or who come from a disadvantaged background. We’ll send you a link to a feedback form. Employers that pay the levy in England receive a 10% top-up from government. Any unused allowance is carried over from one month to the next. You must keep records of any information you have used to calculate your levy payment for at least 3 years after the tax year which they relate to. QA invested in the R&D of a … All textbooks are provided free of charge as e-books. It takes place between the Independent Apprenticeship Assessor and the apprentice. www.gov.uk/guidance/manage-apprenticeship-funds. This means you have an allowance of £1,250 a month. If you’re connected to another employer, you may have to pay the levy if your pay bill is less than £3 million. We are the UK’s leading tech apprenticeship provider, supporting over 7,000 apprenticeships. For non-levy businesses with less than 50 employees there will also be a new £1000 incentive towards apprenticeships for taking on someone aged 16 to18. Apprenticeship Levy payments are a deductible expense for Corporation Tax. Where the allowance has been allocated across connected companies or charities you cannot change the allocation of the allowance at the end of the tax year. There are hundreds of apprenticeships to choose from. How much you’ll have available to spend on apprentices. The levy funds are used to pay for apprenticeship training costs, but not employment costs. jobs@findapprenticeships.co.uk Create an account to manage apprenticeships You need to create or sign in to an apprenticeship account, then you'll be able to get funding to pay for apprenticeship training and assessment costs.. You’ll use your account to: get apprenticeship funding; find and save apprenticeships If you start or stop being an employer part way through the tax year you can use your full annual Apprenticeship Levy allowance against the amount of the levy that you owe. Please provide your company or organisation details and we will call you back the same working day. It will take only 2 minutes to fill in. You cannot change your share of the allowance during the tax year. The Apprenticeship Levy is a new tax that will take effect in April 2017. If you find errors in your total annual pay bill at the end of the tax year, you must submit an extra EPS with the correct Apprenticeship Levy for the full tax year and pay what you owe. Revised apprenticeship standards means you can use funding from the apprenticeship levy to offer an approved apprenticeship scheme in your business. So if you want a career in these areas – … Northumbria University. We use cookies to collect information about how you use GOV.UK. How do non-levy paying employers pay for Apprenticeships training? Employers that meet this criterion are now required to pay 0.5% of their payroll each month as a levy tax. QA: Your organisation's partner for tech and business apprenticeships Connected companies or charities will each need to tell HMRC how much Apprenticeship Levy they owe. You’ll need to report how you’ve allocated your allowance the first time you have to pay Apprenticeship Levy. In this 2-minute video, apprenticeship expert Dr. Sean McCready explains the apprenticeship levy and how to make it work for your organisation. For those aged over 19 they will pay for 95% of the cost – the rest has to be met by you. Skills Training UK’s Apprenticeship Consultancy Service can help allocate this allowance – ensuring you receive maximum return on investment and make best use of the funds available. This figure is your allowance for the first month you report the levy. Technical information with worked examples is available in the Apprenticeship Levy manual. If you’re an employer, the total fee for this programme is: £18,000; Travel expenses to travel to QA centres should be covered by the employer. As a result, the joint venture would not be connected to any other companies. The end point assessment for the Senior Leader Master’s Degree Apprenticeship involves a project showcase, based on a work based project, including a report, presentation and questioning; and a professional discussion based on a review of a portfolio of evidence. Public bodies which are charities must follow the rules for connected charities. If achieved, this will be a 35% increase compared to the previous five years. How do employers get back more than they put it? Apprenticeship Levy is charged at 0.5% of your annual pay bill. It affects all UK organisations with a PAYE wage bill of £3m or more. Each governing body will be entitled to an allowance of £15,000. What can Apprenticeship Levy funds pay for? It means that for every £1 you contribute, you actually receive £1.10. The upper limit of the funding band also caps the maximum price that the government will ‘co-invest’ if an employer does not pay the Apprenticeship Levy or has insufficient funds to pay for the number of Apprenticeships they want to use. Franchises with an annual pay bill of over £3 million (including any connected companies or charities) will have to pay the levy. The apprenticeship levy is a UK tax on employers used to fund apprenticeship training, announced in the July 2015 budget, applicable to all employers with a payroll exceeding £3 million. Connected companies or charities will only have one £15,000 allowance to share between them. You’ll have a full £15,000 allowance if the special purpose vehicle has been set up part way through the tax year. Apprenticeship Levy is charged at 0.5% of your annual pay bill. Multi-academy trusts will get a single annual allowance of £15,000. Help and advice is always available from our Apprenticeship … Making the most of the Apprenticeship Levy. Whenever a payment is taken from your digital account it automatically uses the funds that entered your account first. Additional information added to explain how to apply the Apprenticeship Levy in specific sectors. Subtract your levy allowance for the year to date from 0.5% of your total pay bill for the year to date. Instead, you pay just 5% toward the cost of the Apprenticeship and the government will pay the remaining 95%. If you wold like to know how Skills Training UK can help your SME manage its Apprenticeships funds, please click here. If you employ an Apprentice who needs extra help with English and maths, additional payments are made to your training provider. Levy funds can pay for Apprenticeship training and assessment. When your business is paying the apprenticeship levy it makes sense to make use of the funds. 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