The apprenticeship levy has made waves since launching in April 2017 – and with businesses contributing £1.39bn to the levy last year, it’s easy to see why.
If you’re responsible for the levy in your organisation, it’s vital that you understand these common mistakes and how to avoid them.
Not knowing if your organisation is paying the levy
The levy rules are complex, and this has left an estimated 22 per cent of employers uncertain whether they’re paying the levy.
In short: if your company has an annual payroll bill for employees in England totalling more than £3m, then you’ll be paying 0.5 per cent of that bill (minus a £15,000 allowance).
Not using your levy funds within 24 months
Only 8 per cent of apprenticeship funds were spent within the first year, and as the April 2019 deadline approaches, you must take care that your funds aren’t lost altogether.
Got funds to spare? You can transfer up to 10 per cent to another employer, but be aware that unlike non-transferred funds, these can only be used to hire new starts.
Using your funds without a proper strategy
Modern apprenticeships are a brilliant tool for filling skills gaps, recruiting fresh talent, and upskilling existing employees – even in senior roles.
Think about the skills your organisation needs now and in the future, and prepare an apprenticeship strategy that meets those needs.
Limiting your search to traditional apprenticeship training
The number of apprenticeship training providers has doubled in recent years, and there are now a host of modern training options to choose from.
Your apprentices can now learn online, from your office, and on a flexible schedule that works around your business.
Interested in flexible, digital-first apprenticeships? ICS Learn provides online HR, finance and managerial training fully funded by your levy. Arrange a free consultation today.