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Get your business ready for the levy, and make it work for you.
Preparing your organisation for the apprenticeship levy could give you a significant commercial advantage. The levy is a new cost to employers: you have to pay a 0.5% levy if your annual pay bill is over £3 million. But you can get ‘more out than you put in’, through a government top-up of 10% on your payment – and you can use these combined funds to pay for apprenticeship training and assessment.
Plus, if you spend more than your levy funds, the government will pay 90% of the additional cost, within the funding bands that apply to each type of apprenticeship.
An apprentice can be anyone, of any age, learning new skills. You can use apprenticeships to improve your existing employees’ skills, in a new role or their current role. This includes developing your management team through recognised degree and masters programmes, while they work full-time. New recruits can also be apprentices.
If you don’t use your levy funds within 24 months of paying the money in, you’ll lose them. So it’s important you start preparing now. You’ll need to make sure you comply with the new system, and consider which parts of your current spending on training could come from your levy fund. Also think about how you can use the levy to overcome skills shortages and meet your broader staffing needs.
Helping you gain commercial advantage
Our Readiness Service gives you practical help in developing your business strategy in response to the levy. We tailor our support, providing you and your team with information on the relevant specifics of the levy, and helping you understand the impact and possible opportunities.
We can start by helping you get the numbers right, ensuring your organisation is geared up to make the correct payments and won't be subject to any non-compliance penalties from HMRC. To make sure the levy works for your business, we can help you identify opportunities to get ‘more out than you put in’ through government funding. By thinking about your organisation’s broader purpose – and what skills your people need to fulfil that purpose – we can help you determine possible apprentice roles and look at the return on investment you can create by enhancing your employees’ skills.
Through our approach to our own levy, we’ve developed a strategy that will enable us to draw down all our levy and benefit from some of the government funding. This will see us redefine some of our existing training programmes, and significantly increase the number of apprentices we take on each year. We will also be developing existing staff through role-specific qualifications and helping people enhance their leadership and management skills.
We can tailor the service to your specific needs. Typically we put our guidance into a fully developed board-level report, outlining apprenticeship readiness, forecasted financial impact, and recommendations for using the levy funds to maximise your return on investment.
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