LEVY MANAGEMENT EMPLOYER GUIDE

Transcription

1 LEVY MANAGEMENT EMPLOYER GUIDE

2 EMPLOYER GUIDE HELPING YOU TO UNDERSTAND THE LEVY The Apprenticeship Levy is a new Government initiative that will be implemented from May All employers with an annual payroll of 3 million or over will have to offer training through an approved training provider, such as 3aaa. This guide is to simplify the implementation process of the Levy and assist you in understanding the fundamentals of how it will affect your business. 3aaa are dedicated to providing you with a Levy Management package to ensure you maximise the potential gain from this new initiative by offering a three stage consulting service as well as a full time, zero cost project manager. Contact us now to implement plans for your future Levy management. apprenticeshiplevy@3aaa.co.uk KEY FACTS HOW THE LEVY WILL AFFECT YOUR BUSINESS 1. The national Apprenticeship programme is being expanded from April 2017 through the Apprenticeship Levy. 2. The Levy will apply to all large organisations with an annual payroll of over 3million per annum, regardless of whether they already employ Apprentices or not. 3. It will be payable by employers in the UK at the rate of 0.5% of the payroll cost through PAYE alongside Income Tax and National Insurance. 4. Employers will not pay the first 15k of the Levy, which effectively means that the Levy will only be payable on payrolls in excess of 3 million per year. 5. All employers will be supported by the government with regards to the Apprenticeship training. 6. Public sector organisations will also pay the Levy if their payroll meets the above criteria and in addition, 2.32% of their workforce must be Apprentices. 7. Funding bands are now in place, meaning that there will be no stipulation regarding the age, previous qualifications or geographical location of the Apprentice. HOW WILL YOUR MONTHLY CONTRIBUTIONS BE CALCULATED? MONTHLY LEVY PAID TO HMRC x 0.5% OF WAGE BILL x 10% GOVERNMENT TOP UP 1

3 INTRODUCTION - APPRENTICESHIP LEVY The Levy will be applied to all industries in the UK and will first come into effect from May 2017 at a rate of 0.5% of an employer s wage bill and will be paid through PAYE. Each Employer will receive an allowance of 15,000 to offset against their Levy payment. The Levy payment will only be paid by Employers who have an annual payroll of more than 3 million, which represents only 2% of UK Employers. Throughout this guide, we will share some of the key facts about the government Apprenticeship Levy, how it will affect your business as well as providing information about how 3aaa can support your business with an effective implementation plan. WE ARE 3AAA SPECIALISTS IN PROFESSIONAL SERVICES APPRENTICESHIPS TECHNOLOGY DIGITAL MARKETING ACCOUNTANCY BUSINESS ADMINISTRATION FINANCIAL SERVICES LEGAL HUMAN RESOURCES MANAGEMENT 2

4 APPRENTICESHIP LEVY CALCULATOR EXAMPLES: A. Employer of 250 employees, each with a gross salary of 20,000 Wage bill: 250 x 20,000-5,000,000 Levy Sum: 0.5% x 5,000,000 = 25,000 Allowance: 25,000-15,000 = 10,000 annual Levy Payment B. Employer of 150 employees, each with a gross salary of 20,000 Wage bill: 150 x 20,000-3,000,000 Levy Sum: 0.5% x 3,000,000 = 15,000 Allowance: 15,000-15,000 = 0 annual Levy Payment C. Employer of 100 employees, each with a gross salary of 20,000 Wage bill: 100 x 20,000-2,000,000 Levy Sum: 0.5% x 2,000,000 = 10,000 Allowance: 10,000-15,000 = 0 annual Levy Payment To keep up to date with the Apprenticeship Levy, join our LinkedIn Group. Search 'Apprenticeships Levy Updates' now! 33

5 THE LEVY EXPLAINED Employers who pay the Apprenticeship Levy and provide Apprenticeships will be able to allocate their Levy contributions as digital vouchers to use to train their Apprentices. This voucher system only applies for Employers in England. Employers will be allowed to spend their digital vouchers within a period of up to 24 months. All employers will also receive a 10% top-up payment from the Government. The aim is that employers who commit to Apprenticeships will be able to get out more than they pay in to the Levy, using the top up payments. The aim of the Levy is to increase the investment from UK Employers in training through Apprenticeships, making it a long term solution to support economical growth and commitment and to improve the standards of training available across the country. FUNDING BANDS Apprenticeship funding currently takes in to account a variety of elements based on the Apprentice. As of April 2017, this will be changed and all funding will be based on the Apprenticeship framework and will not change, regardless of the Apprentice's age, geographical location or prior qualifications, meaning you have much more opportunity to hire individuals who meet your business requirements. To discuss the banding of all Apprenticeships, get in touch with our Levy Management team. HOW 3AAA CAN HELP - ACTIONS AND ADVICE At 3aaa, we will offer you a 3 stage consulting service as we look to make your experience as simple and informative as possible. This service is available to both Levy payers and Non-Levy payers. 1. Free of Charge - Our support and guidance is completely free of charge. Find out how an Apprentice can help transform your business Training Needs Analysis - Our team will get to know your business and help to identify any requirements that you have. We pride ourselves on providing the right young people for your business.l apply to all large organisations with an annual payroll of over 3million per annum, regardless of whether they already employ apprentices or not. 3. One Stop Shop - We can offer support from straight forward advice and guidance through to a fully managed service, including: Ofsted 'Outstanding' Apprenticeship Training. A dedicated Account Manager. Joint Marketing and Events. Apprentice Recruitment. Commercial Training. Digital Levy Pot Account Management. Internal Training. Tailored Apprenticeship Programme Development. 4 4

6 LEVY MANAGEMENT CONTACT US NOW! 0330www.apprenticeshipslevy.com