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What the Apprenticeship Levy Means for You

UK Apprenticeship Levy

From the 6th April, most Arpal Group customers in the UK will be liable to pay the new Apprenticeship Levy.

What does this mean for you?

Hospitality UK has just published a short but very useful guide.

Referred to by some as a ‘new payroll tax’, the Apprenticeship levy will add cost to many of our clients. Some of the additional expense can be recouped if the employer takes on an apprentice. The overall aim of the levy is to encourage employers to think creatively about apprenticeships as a way of attracting and retaining talent. The scope for running apprenticeships in the tourism and hospitality industry is huge.

The article lists five key things you need to know:

  • The levy will be 0.5% of the employer’s total payroll bill. This will include sums paid as bonus, commission, pension contributions as well as basic pay.
  • Only those with a payroll bill of more than £3m will be liable to pay.
  • The levy is payable by all employers regardless of sector and irrespective of whether they have or intend to have any apprentices.
  • If an employer has or takes on apprentices, they can reclaim some of the levy they have paid. The amounts paid by the employer must be put into a Digital Apprenticeship Service account. This will be topped up by a further 10% from the government. Additional governmental top ups may be available to employers employing 16 to 18 year olds.
  • The funds in the Digital Apprenticeship Service account can only be used to pay for approved training for apprentices. These funds need to be used within 24 months of being deposited in the account or else they will be returned to the government.

Full story at 10 things you need to know about the Apprenticeship Levy.

The Arpal Group

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