Claim it back through training!
It has been over two years since the UK government announced it would introduce the Apprenticeship Levy, and as of April 2017 it has now come into effect. If you are a business with a wage bill of over £3m per annum (including bonuses and pension contributions), then you will now be paying into a central pot that is to be invested in apprenticeship schemes.
The levy has been introduced to ‘boost productivity’ and develop vocational skills among apprentices. It will apply to all sectors, and will affect all employers of employees who work in the UK.
If your wage bill comes above the £3m p/a mark, then you will be asked to pay 0.5% of your UK payroll, subject to Class 1 secondary NICS. This payroll figure combines salaries, bonuses, commissions, and pension contributions.
How can I claim back my Apprenticeship Levy contribution?
The government has set a target of three million apprenticeship starts by 2020. The scheme has been introduced as an incentive to achieve this, and to address the noticeable skills shortage in the UK, especially in the financial services sector.
Your levy payment can therefore be reclaimed if you spend it on training for apprentices. Not only can you reclaim the full amount, there are even clauses that offer an additional 10% on top!
You may think that your company isn’t eligible as you don’t currently recruit apprentices. Interestingly, the definition of an apprentice has changed, meaning you may be more entitled than you think.
For example, there is no age limit on apprentices. This means you don’t just have to consider recent graduates for an apprentice role. Instead, you can look to more experienced sector workers. There are also no limitations on the role an apprentice can hold. You can even recruit for a more senior position if required.
Ultimately, anyone in your business can be classed as an apprentice, if they meet the required standards. Providing the individual is learning a new skill, then the criteria can be adjusted to meet those requirements.
How can we help?
At Capital City Training & Consulting, we can deliver training as a subcontractor to an Apprenticeship Training Provider.There is an online process for you – the client – to become an apprenticeship training provider and the registry opens periodically for applications. Your firm can apply online, and it’s a fairly clear and objective process, albeit with some form-filling exercises involved!
As a first step we can help assess the budget available for apprenticeship training.
We can also help you evaluate the existing setup, to see which roles currently filled fit the apprenticeship standard. This helps us to assess how much you can claim for each apprentice.
Lastly, we recommend the most suitable training and qualifications for the roles you currently employ.
Attracting talent and developing skills in the financial services sector benefits everyone. By reinvesting reclaimed levy contributions into training, you are giving apprentices, and your company, the opportunity to grow. The industry will reap the benefits too, giving the UK economy the boost it requires.
If you would like to know more about what Capital City Training & Consulting can do to secure your reclaimed training allowance from the Apprenticeship Levy, then please call us on 0203 286 0836 or email us on email@example.com