In April 2017, the government introduced an apprenticeship levy; a tax on UK employers to support the funding of apprentices. Any private or public company with a total wage bill of more than £3 million is required to put 0.5% of their payroll into the levy. Though slightly worryingly, a poll earlier this year for City and Guilds found that a third of employers liable to pay the new levy were not even aware of its existence.
The government hopes the levy will see the spending on apprenticeships double- leading to the creation of three million new apprenticeship opportunities. However, concern has been expressed over the impact the new levy could have on other areas of a business, for example cash flow and existing staff training plans.
Government clarification on how the levy is meant to work would be beneficial, not least as the Apprentice Levy has the potential to benefit a broad range of people, as well as the apprentices themselves.
If you want to know any further information about the levy or whether your business can benefit please contact one of our team.