Apprenticeship Levy -Update 2019

Unused Apprenticeship Levy will return to the Government pot as of May 2019 and here at Sporting Futures Training we continue to urge schools to think about how they can spend their levy, through either employing new recruits or upskilling existing staff. Sporting Futures Training is committed to offering up to the minute, clear information for all schools relating to how best use their Apprenticeship Levy on Apprenticeship Training. We are Teachers and understand the current challenging financial climate in schools. Please contact us and we will offer guidance and support on the use of the Levy. Tel: 01438 791068 Email: We fully recognise that organisations now have a better understanding  of  the Apprenticeship Reforms, however, we can always provide that additional no-nonsense guidance. What is the Apprenticeship Levy? The Apprenticeship Levy is part of the Government’s plan to increase the quantity and quality of apprenticeships. The Levy is a new tax which aims to fund three million new apprenticeships in England by 2020. Will all organisations need to pay the Levy? All UK employers who have a total employee pay bill above £3m a year will pay the Levy. This includes public and private sector, charities and educational providers such as academy groups and universities. Employers get a £15,000 fixed annual allowance to offset against the Levy payment. Employers who operate multiple payrolls will only be able to claim one allowance for the Levy. For example, if you have a £3m pay bill, you would have a Levy bill of £15,000 (at 0.5% of employer pay bill). The allowance is offset against this so your Levy payment is £0.00. Local Authority Schools with a wage bill of less than £3m will pay a contribution towards the Levy to the Local Authority. How will the Levy be collected? Payments will be collected monthly by HM Revenue and Customs (HMRC) through Pay As You Earn (PAYE), alongside tax and National Insurance. What happens to the money once it has been paid? The money will be collected by HMRC and for apprenticeship training in England will be accessed via a new Digital Apprenticeship Service (DAS) account. You will be able to use this to pay for apprentice training. On your DAS account you will be able to see training providers you want to deliver the training, choose appropriate apprenticeship training courses and find candidates for your programmes. You can register for the Digital Apprenticeship Service now: What can the Levy be spent on? You can spend your Levy funds from late May 2017 on apprentice training for either existing staff or new recruits as long as the training meets an approved standard or framework and the individual meets the apprentice eligibility criteria. A range of apprenticeship training programmes can be funded. They must be provided to an approved apprenticeship standard. Read the Government’s full list of apprenticeship standards here: Funds can only be used towards the costs of apprenticeship training. They cannot be used on other associated costs such as apprentice wages, travel and subsidiary costs or the costs of setting up an apprenticeship programme How do I spend the money on training? In England, you’ll need to register your details online, along with the details of your apprentice. You’ll be able to see how much can be drawn down for each apprentice in the form of the voucher. You can then use these vouchers to spend on training with registered training organisations from late May 2017. When an apprenticeship has started, monthly payments will be automatically taken from your digital account and sent to the training provider. This spreads the cost over the lifetime of the apprenticeship. You will see funds entering your digital account each month as you pay the Levy, and funds leaving the account regularly each month as you pay for training. What does the Apprenticeship Levy mean for small businesses? If your organisation has a pay bill less than £3m it will not have to pay the Levy. In England, organisations will still be able to access government support for apprenticeships through the National Apprenticeship Service. Employers who are not paying into the Levy will be able to co-invest in apprenticeships. The Government will contribute 90% of the training cost with the employer contributing the remaining 10%. After utilising the Levy what do I do if I want to train further apprentices? Employers who have utilised their Levy and wish to train further apprentices will receive a 90% contribution from the Government with the employer paying the remaining 10%. Are there any other useful resources on the Apprenticeship Levy? The government website on apprenticeship funding and the Levy has plenty of information and detailed documents to give further guidance: