01782 827 827 info@acorntraining.co.uk

Apprenticeship Levy and Incentives

Apprenticeship Levy

We are here to help guide employers through the main aspects of the Apprenticeship Levy, here is a summary of the key points:

  • All employers operating in the UK, with a pay bill over £3 million each year, will be expected to invest in apprenticeships
  • Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions (NICs) such as wages, bonuses and commissions
  • Employers who aren’t connected to another company or charity will have an Apprenticeship Levy allowance of £15,000 each year
  • The Apprenticeship Levy is charged at 0.5% of your annual pay bill. You can use HMRC’s Basic PAYE Tools to help you work out how much you need to pay

Once you have declared the levy to HMRC, you will be able to access funding for apprenticeships through your new Digital Apprenticeship Service (DAS) account. We provide step-by-step support on using your DAS account.

Apprenticeship Incentives

(from 1st April 2021 until September 2021)

Apprentices are a valuable addition to the workforce and with financial incentives of up to £4000 available there has never been a better time to upskill your business with an apprenticeship.

The government have recently extended additional incentive payments available to employers when hiring apprentices until September 2021.

  • Employers will receive £3,000 for new apprentices of any age who join their organisation. This applies to apprentices recruited from 1st April 2021 to 30th September 2021 and the apprentice must be a new employee to the business.
  • Payments will be in addition to the existing £1,000 payment the government already provides for 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan.
  • Payments will be made in two instalments, 50% when the apprentice has been in learning for 90 days and the final 50% at 365 days.
  • Grants will be processed through the Apprenticeship Service.
  • There is no limit on the number of incentive payments that can be claimed for new apprentices. (Apprentices must meet eligibility criteria).

Contact us today for tailored advice on how to use your DAS account, access funding, create apprentice roles, apply for grants and find the new talent to join your business. We deliver apprenticeships in Business Admin, Health & Social Care, Early Years, Ops Management, HR & many more, to view our full list of standards please click here.