How will the apprenticeship levy affect us?
Paybill of £3 million or more
If you are an employer with an annual paybill of more than £3 million, you will start to pay the levy in May 2017. Once you have declared the levy to HMRC, you will make monthly payments through the PAYE system, the government will top this up with a 10% contribution. You will be able to access funding for apprenticeships through a new digital apprenticeship service account.
Paybill of less than £3 million
If your annual paybill is less than £3 million you do not pay the levy and you won't need to use the digital apprenticeship service to pay for apprenticeships training and assessment until at least 2018. The way apprenticeships are funded will however change for you, and from April 2017 you will be required to make a contribution to the cost of apprenticeships. Organisations with a paybill of less than £3 million pounds will be required to contribute 10% of the cost of the programme with the government paying the remaining 90%, up to the maximum amount of government funding available for the specific apprenticeship.
The Digital Apprenticeship Service
All levy paying employers will need to register for the digital apprenticeship service when this becomes available. The Digital Apprenticeship Service will be the place for employers to go in order to manage their levy pot, accounts will be credited each month with the apprenticeship levy contribution plus the 10% government top up. You will also be able to use the service to find out what apprenticeship provision is available and the providers with whom it is available. The levy funds held in your account will expire 24 months after they have been deposited.
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