Are you a small business owner interested in taking on a school leaver Apprentice? Here is everything you need to know about the new incentive payments that may be available to you.
The way in which your apprenticeship is funded will depend on the age of your apprentice and your annual turnover.
A salary bill of less than £3 million (Non-Levy Employer)
Apprentice Age: 16-21 or 22-24 and a Care Leaver or has an Education Health Care Plan
Apprenticeship training and assessment will be fully funded.
CASH INCENTIVE AVAILABLE
If your apprentice is aged between 16-18 or 19 – 24 and is a care leaver or has an Education and Health Care plan, you will receive an additional £1000 Government payment.
A Salary bill of less than £3 million (Non-Levy Employer)
Apprentice Age: 22 and over
The government will fund 95% of the apprenticeship training and assessment costs. The remaining 5% will be paid by the employer.
A salary bill of more than £3 million (Levy Employer)
You will already be paying the Apprenticeship Levy.
The Apprenticeship Levy is a mandatory government tax that will be payable by all UK employers with a pay bill over £3million. You will contribute 0.5% of your annual salary bill into the Levy. The government will add a 10% top up.
The levy is collected through monthly HMRC deductions and the amount you pay will be credited to the apprenticeship. The monies you build up in your apprenticeship service account is yours but must be spent on apprenticeships. It cannot be used on wages or other staff expenses. You have 24 months to spend levy funds.
CASH INCENTIVE AVAILABLE
If your apprentice is aged between 16-18 or 19 – 24 and is a care leaver or has an Education and Health Care plan, you will receive an additional £1000 Government payment.
To access apprenticeship funding, all employers are required to set up an Apprenticeship Service Account. Click here for more information.
For further information and for full costs of all of our apprenticeships please contact us on 0161 280 8650 or email apprenticeship@burycollege.ac.uk.
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