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  1. Apprenticeship-Levy-FAQs

Why is the Apprenticeship Levy being introduced?

Commencing in April 2017, the aim of the Apprenticeship Levy is to improve the quality and quantity of Apprenticeships in England and to meet the government target of 3 million apprenticeships by 2020. It is also recognised that there is also a large skills gap and aging workforce in the UK and it is hoped that Apprenticeships will close this skills gap and develop homegrown talent.

Who will need to pay the Levy?

Any employer with a payee bill of £3 million or more will be required to pay the Apprenticeship Levy from April 2017. The Levy is 0.5% of your payee bill, however each employer will receive a £15,000 offset allowance each tax year so the majority of companies will not need to pay anything at all.

How will it work?

You will pay the levy each month through PAYE and the money will go into a digital account via the Digital Apprenticeship Service (DAS) and will be available for you to spend on apprenticeship training with a recognised provider.

Can I use my Levy to train existing staff?

Yes, providing that the employee will be learning new skills/knowledge and that the apprenticeship is relevant to their role and a way of progressing their career.

Do I need to do anything about it now?

You need to start planning now so that you can maximise your apprenticeship levy. You can use your Levy to train both new and existing employees and we can work with you to ensure that you can spend your money effectively.

 

How can Siemens Digital Factory Apprenticeships help you?

We can help support your business with a Skills Gap Assessment and identifying individual training needs. We can help you to look at your Apprenticeship Levy and give you guidance on how to spend your money effectively.

We will guide you on choosing the right training that you need to ensure that your apprentices have relevant skills and comprehensive knowledge and help to create a competent workforce who can embrace the challenges of a digital future.