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3/24/2016 1:15:05 PM

Employment Law Update - National Living Wage and more...

Our breakfast seminar on the National Living Wage and changes in employment law due to come into effect in the near future generated some further questions on the Apprenticeship Levy.

Adam Haines from Aaron and Partners has provided some additional information:

The Apprenticeship Levy is expected to come in to force from April 2017. The below details are based on the current information but it is likely that the proposal will be subject to further amendments.    
It is effectively a new tax which will be payable by all employers, in all sectors, across the whole of the UK. The purpose is to raise funds of £3bn a year to achieve an increase in the quantity and quality of apprenticeships.

The levy will be charged at 0.5% of an employer’s total pay bill and each employer will receive an allowance of £15,000 to offset against the levy payment. As such, small employers will have access to funds provided, without a requirement to contribute, as a £3m payroll threshold applies.

The government will create a Digital Apprenticeships Service which all businesses will have access to, regardless of whether they have contributed to the levy.  It will provide access for apprenticeships, accredited training providers and enable employer’s to pay for training with digital vouchers.

Clearly it is preferable for larger employers to use the levy/funding generated on training and developing their staff, rather than being a cost to the business. However, funding unused will expire within two years if it is not utilised and returned to the general fund.

It is also possible for employers to apply for funding to be increased above their contribution which will be paid out of unused fund from other employers.

Delegates may contact Adam here or call 01244 405414 with any further queries.


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