Regardless of how you pay for your funding, you are entitled too further incentives for hiring an apprentice or upskilling your existing workforce:
What you can use the payment for:
The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.
Apprenticeships for large employers
How the Apprenticeship Levy is calculated
- UK employers with an annual PAYE bill of £3m or more pay the
- Apprenticeship Levy
- An annual allowance is deducted from the employer’s wages bill
- An amount equivalent to 0.5% of the employer’s total PAYE amount is then taken from the remainder
- This 0.5% amount is the
- Apprenticeship Levy payment payable by the employer
- The payment is deposited in an
- Apprenticeship Service Account
- The government applies a top-up of 10% to the funds available
- The Apprenticeship Service Account can be accessed to fund employee apprenticeship training only.
Apprenticeships for small employers
As a SME, there is a high likelihood that your business will not have to pay the Apprenticeship Levy, therefore here is how your funding is covered:
We can help you:
Watch this video here on how to reserve funds in your digital account.
Transferring apprenticeship funds
UK Skills academy will support you with a free advisory service and manage this proves for you.