Apprenticeship Levy to be introduced in April
The Government are beginning to introduce new initiatives that will enable them to achieve their goal of creating three million new apprentices by 2020. This includes ensuring big organisations are getting serious about apprentice programmes through the introduction of a new Apprenticeship levy effective as of the 6th April 2017.
The levy will see all large employers (those with an annual payroll of more than £3 million) facing an additional 0.5% tax, which can be recouped through subsidies for training apprentices.
Large employers will be able to access the levied accounts, plus a government top-up of 10% to fund apprenticeships from accredited training providers.
Smaller organisations, while not required to pay the new levy, will also potentially be eligible to receive funding for accredited apprenticeships. If the company contribute 10% of the cost of the apprenticeship, the remaining will be provided by the government.
If you are concerned with how this may affect you, or you wish to know more about how apprenticeships may suit your business’s needs. Do not hesitate to get in touch with the team here at First Call HR, as a professional and reliable HR support service, we are more than happy to help.