April 2017 marks the start of the new tax year, and with it new policies. One policy which will have a huge impact on the world of apprenticeships is the Apprenticeship Levy.
The Apprenticeship Levy will apply to employers in all sectors. Set up with the goal of increasing the number of apprenticeships and improving workforce vocational skills, it will require companies with a tax bill over £3 million pounds to pay 0.5% of that bill into a pot which will be used to fund training for apprenticeships. The government will also add a contribution of 10% to each payment. The funds in the pot will then be used to training for apprentices the company takes on, but will only be available for two years. At the end of the two year cycle, any money left in the pot will go to the government as a tax payment. A classic case of “use it or lose it”!
To learn more about the Apprenticeship Levy, watch our video!
If you would like to know more about how the Apprenticeship Levy can help you grow your workforce, then please contact us.