Apprenticeship Levy
The government have introduced a further employer incentive of £3,000 for each new apprentice start until January 2022. This is in addition to the following:
Identify which category your company fits into for the levy and discover the benefits available:
| Age group of apprentices, number of employees and annual wage bill | Levy or Non-levy | Receive a £1,000 government Incentive Payment | Payment Structure |
|---|---|---|---|
|
16 – 18 Years Less than 50 Employees and a wage bill of less than £3 million |
100% Government Funded | Yes | 100% Government Funded |
|
16 – 18 Years More than 50 Employees and a wage bill of less than £3 million |
Non-levy | Yes | Employer 5% Government 95% |
|
16 – 18 Years More than 50 Employees and a wage bill of more than £3 million |
Levy | Yes |
100% out of levy account (If levy account runs out the government will co-invest the remaining cost by 90%) |
|
19+ Years A wage bill of less than £3 million |
Non-levy | No | Employer 5% Government 95% |
|
19+ Years A wage bill of more than £3 million |
Levy | No |
100% out of levy account (If levy account runs out the government will co-invest the remaining cost by 90%) |
Interesting Facts:
- Apprenticeships are available for anybody aged above 16
- Apprenticeships are available to both new and existing employees
- The incentive payments for 16-18 are paid in two instalments; days 90 and 365
- The payment structure will commence on the agreed apprentice start date
- The employer has 42 days, after the apprenticeship commencement, to cancel the apprenticeship contract and receive a full refund of all monies spent to the provider
- Funding rules have changed to enable levy paying companies to reallocate 25% of the funds in their levy account to smaller companies in their supply chain.
