Funding the Apprenticeship
What is the Apprenticeship levy
A company with a payroll of more than £3 million will pay 0.5% of the pay bill into the apprenticeship levy. The apprentice levy can only be used for apprenticeships; however, this can be used for new or existing staff.
The levy is collected automatically through the PAYE with HMRC alongside income tax and national insurance. You can use your apprenticeship levy to recruit new staff or develop new skills for existing staff. The introduction of the apprenticeship levy has given employers better control on duration, training and assessments to get the perfect outcome.
Route map - How it works
How to set up and add apprentices onto the Digital Account
If you do not pay into the levy
If you are a small to medium enterprise or a micro company, then you can receive 95% of funding for apprenticeships. You can recruit new or train eligible existing members of staff and the government will pay 95% of the apprenticeship price. If you employ less than 49 members of staff and recruit a 16 – 18 year old the government will fully fund the apprentice.
As an SME/Micro employer, you will need to register with The apprenticeship service to allocate funding your apprentice. Here’s how
How to reserve apprenticeship funding on The Apprenticeship Service
If you have any issues setting up an account, we would be more than happy to guide you through the process. Please contact Grimsby Institute Apprenticeship Team on 0800 012 6656.