From April 2017, businesses with annual payroll costs of £3 million or more will pay 0.5% of their annual payroll bill, minus an allowance of £15,000, into a special account.
Each levy-paying business in England will then use a digital account, plus a 10% top-up from the Government, to pay for any apprentice training. Scotland, Wales and Northern Ireland will have their own arrangements.
The Department for Education has proposed that the new funding system comes into effect on May 1, 2017, so that levy-paying employers can use funds in their accounts to pay for training from the first month they declare levy payable through the PAYE system.
– The latest briefing from the Department for Education on the apprenticeship levy, including funding bands for apprenticeships.
– Estimate how much your business will have to pay into its apprenticeship levy fund.