New apprenticeship levy: how will it affect your business?

While some may see it as a tax, the new apprenticeship levy can be seen as an opportunity for businesses.
13 June 2016

From April 2017, as part of the apprenticeship reform plan, the government is planning to introduce an apprenticeship levy. This will be paid by all employers with an annual salary bill more than £3 million.

The charge is, to all intents and purposes, a tax on business and the money raised will be ring-fenced to pay for apprenticeships.

On the 21 April the government updated their guidance for employers. The new information explains how the digital apprenticeship service will assist employers and what employers can spend their levy funding on.

The changes mean this is a good time to start thinking about apprenticeships at your business

There is still much detail to be announced, such as how non-levy payers will be supported through ‘co-investment’ but further information will be published throughout the year in June, October and December 2016.

The government are also calling for employers to assist with developing and testing the new digital apprenticeship service, anyone wishing to be involved can email - DAS@bis.gsi.gov.uk

The changes mean this is a good time to start thinking about apprenticeships at your business, especially if you don’t have them already. While some may see this as a tax, they can also be seen as a great opportunity.

Organisations such as YMCA Training can help you find quality apprenticeships tailored to your needs and offer advice about how to make the most of the accompanied government funding that will be made available.

If you’d like to discuss how apprenticeships are changing and how your business can benefit please contact Cheryl Sharp, Head of Business Development, on 07341 072491 or cheryl.sharp@ymca.co.uk.

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