Post on 15-Apr-2017
transcript
Are you ready for the Apprenticeship Levy?
Jo Preston-Taylor – Managing Director at BPP Leeds
BPP Alumni
Agenda
• What is the apprenticeship levy?
• How does the levy impact your business?
• How will the levy work?
• Strategic planning
• Next Steps
• Questions
BPP Alumni
What is the apprenticeship levy?• From 5th April 2017, Employers with a
paybill of £3m or over will be charged a levy of 0.5% of their paybill
• The paybill will be based upon your company’s total UK employee earnings that are subject to Class 1 secondary NI contributions
• The levy will be payable through the PAYE system and will be payable monthly in real time
• The levy is ring-fenced in the form of an electronic voucher that can be used to purchase apprenticeship training
BPP Alumni
How does the levy impact your business?
BPP Alumni
How will the levy work?
BPP Alumni
Strategic Planning
• Companies need to begin planning now to ensure the levy ties in with their future people strategy
• Do not under-estimate the volume of apprenticeship training required if you intend to fully utilise your levy pot
• Think about EXISTING staff members as well as NEW HIRE roles
• Think about what your company currently spends on external training – can any of these programmes be converted into an eligible apprenticeship training programme?
• More guidance from Government expected in June 16 and October 16
BPP Alumni
Example
• Company A employs 10,000 UK staff• 75% of staff are based in England• Payroll bill subject to the levy is
approximately £200m
£200m x 0.5% £1,000,000
English proportion (£1m x 75%) £750,000
Less: £15,000 government allowance (£15,000)
Total levy entering company’s digital account £735,000
Add: 10% government top up £73,500
Total annual levy pot £808,500
BPP Alumni
Example
If the company wanted to utilise all of their annual levy pot, the below table provides an example of how many apprenticeship programmes would need to be started:
Total annual levy pot
£808,500 Average annual cost of a BPP Professional Apprenticeship programme £4,800
Number of apprentices required
168
BPP Alumni
Next Steps….
Also consider:
• Updating your payroll software
• Consider a pilot apprenticeship scheme in September 16 if you do not currently take on apprentices
• Speak to your apprenticeship training provider to see how they can help you plan for the levy
BPP Alumni
Trailblazer Standards
A link to all of the trailblazer standards that have currently been approved can be found below:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/524852/Apps_standards_list_20.05.pdf
joannapreston-taylor@bpp.com
Questions?