Maximum number of cars added to compare list.

What's your postcode?

We need your postcode in order to provide accurate search results.

Enquire

Enter your first name
Enter your last name
Enter your phone number

Got a part exchange?

Tell us your reg plate and receive a part exchange valuation on your car?

What's this?

Compare cars side by side to save time clicking backwards and forwards between them.

New apprenticeship levyBack

apprenticeshipsThe new apprenticeship levy is due to start in April 2017.  The levy will apply to employers with payroll bills of over £3 million, some 2% of UK employers.  The levy is 0.5% of a firm’s wage bill and will be collected similarly to other payroll taxes.  All employers will be given a £15,000 allowance to offset against their levy payment.

The new levy will help pay for apprenticeship training.  Employers will be able to recoup the cost of the levy by taking on apprentices and training them using the funding made available from the new scheme.  The Government has not revealed yet what percentage of the levy will be allocated to the training.

Current Situation

Currently, the Government pays two thirds of the training and assessment process with the employer funding the final third. The Government, however, pays in full for employers’ incentives, English and maths educational support, as well as additional learning support.

How will it work

Employers will have more freedom to use the allowance and will be able to develop Trailblazer apprenticeships suited to their business sector and needs.  This should mean more employer ownership and hopefully more apprentices trained to fill the skills gaps.

The new levy will be collected by HM Revenue and Customs’ through PAYE and funding will then be put into the hands of employers alongside the design of the apprenticeships’ standards.

Calculating the new levy  

The new levy is based on an employer’s payroll cost and applied at 0.5%.  For example: –

Employer of 250 employees, each with an average gross salary of £20,000

Payroll cost: 250 x £20,000 = £5,000,000

Levy sum: 0.5% x £5,000,000 = £25,000

Applying the allowance of £15,000 would reduce the £25,000 to a levy of £10,000.

Implementation

The levy is due to be implemented next April, however businesses have recently called for a delay due to economic concerns following the Brexit vote.  Businesses are facing a period of uncertainty and need to adapt, particularly, in the short term.  The additional cost of the levy will not be helpful while this is happening.  The NFDA have also urged the Government to delay the introduction of the levy for at least a year to ensure no unintended consequences such as job losses due to the extra costs to business.

Posted by Sue Robinson on 29/07/2016