26 | Tees Business
Charlotte Frewin , an apprentice with the Centre for Process Innovation at the Wilton Centre .
What you need to know about the Apprenticeship Levy
Northern Skills Group director Peter Wilson on what the Apprenticeship Levy could mean for your business
You might have heard the words Apprenticeship Levy . But do you know what it means for your business ?
You need to be ready – not just because of obligations , but the opportunities on offer too .
In a nutshell , the Levy means firms with a pay bill of £ 3m or more will contribute 0.5 % of that bill to invest in apprenticeships .
The model is applicable across all businesses , and each one gets a £ 15,000 allowance to offset against their payment .
When calculating their pay bill companies must include all employees subject to Class 1 National Insurance contributions – including wages of those under 21 , commissions , pensions contributions , and so on .
The pay bill doesn ’ t include those under 16 , payments not subject to National Insurance contributions , benefits in kind and employees abroad .
Those liable to pay the Levy must report so each month and pay – through the PAYE process – at the same time as they do tax and earnings-related contributions .
That ’ s where the hard part stops , and where the opportunity begins . Levy funds can pay for apprenticeship training and assessment .
For non-Levy paying employers who want to invest in an apprentice , the Government will pay 90 % of the cost .
Regardless of the size of your organisation , the best way to make sure you benefit from these changes is to consider how apprenticeship training could work for you across your whole business .
Apprenticeships can encompass a whole range of different training methods that can be tweaked and modified to suit your needs .
Perhaps you need new technical skills to grow your product offering , you ’ ve got a group of promising junior staff who you want to retain or you ’ re looking to develop your management team .
Apprenticeship programmes could be the solution to these issues . From bringing new staff into the business to equipping existing employees with the skills they need to progress .
It pays to talk to someone who can assess your challenges and match them with solutions – whether that ’ s a fullyfunded , custom-built commercial or existing programme .
Programmes can be structured to suit your business . That could mean an apprentice on day-release – one day a week – or a block release of several days . We can also deliver on your premises .
To access funding , companies can visit the Government ’ s new Digital Apprenticeship Service , and talk to training providers like Northern Skills Group .
The changes in April also launched the Institute of Apprenticeships – a new independent statutory body to oversee quality assurance in apprenticeship provision , advise Government on funding that should be applied to each apprenticeship standard and develop the assessment of apprenticeships , in conjunction with employer groups .