What Else You Should Know About The Apprenticeship Levy
Even though it is a major topic for discussions, especially after it came into effect on 6th April this year, there are still many people that do not fully understand the apprenticeship levy for UK employers. London flooring experts will provide us with further details on the matter and how it will affect businesses.
- To begin with, let`s see what exactly the apprenticeship levy is. As the current government showed ambitions to raise the number of apprenticeships in the UK when it was elected in 2015, they created a plan to follow so fruitful results can be achieved. The idea was a big part of these apprenticeships to be funded by employers that will later benefit from the system. More detailed proposals for a new levy on large employers were then put forward by the government aiming to support 3 million new apprenticeships for the 16+-year-olds by 2020.
- London flooring specialists point out that the levy, in its essence, will be a commitment on qualifying UK employers in both private and public sectors to fund apprentices from May this year. The levy applies equally to employers in England, Wales, Scotland and Northern Ireland.
- What`s the purpose of the levy? Flooring contractors in London say it operates to encourage employers to invest in apprenticeship programmes. The aim of the government is to improve the quantity and quality of apprenticeships, therefore, to make the industry flourish. Employers will control the apprenticeship funding with the help of digital apprenticeship service – DAS. London flooring experts share that through this service employers can choose the number of apprentices they take on, the certain type of apprenticeship and they can select the training provider that best suits their need.
- Another matter worth discussing is how the levy will be charged. London flooring professionals say that it will be charged with a rate of 0.5% of the employer’s pay bill. This will affect the employers with annual pay bills in excess of £3 m. or in other words 2% of the employers in the UK. It will be payable on a monthly basis and it will be collected by HMRC through PAYE together with the national insurance and tax income contributions.
- London flooring specialists point out how the apprenticeship will affect firms in terms of dealing with associated payroll administration so companies should consider the changes they may have in their payroll system. They also may need to seek help and professional advice on financial remodelling. Unused levy as it will be used to fund the apprenticeships for small and medium businesses. Businesses that have used up their levy pot or non-levy paying businesses with over 50 employees will have to make a contribution of 10% of the apprenticeship`s cost – the remaining part will be paid by the government.
Something which is worth noting is that the levy can be used to provide training for employees of any age as long as there is a real need for that – the levy will bring a lot of positive changes for the flooring industry for sure.
Inspired by www.contractflooringjournal.co.uk