Apprenticeship Levy FAQs - Your Questions Answered (Part 2)
Part two of our Apprenticeship Levy FAQs blog series will look at some of the more technical questions people have on the Levy.
If you missed part one, you can read it here.
How is the government going to help me take on apprentices?
When your business pays into the Levy, you’ll be issued with a digital voucher so you can purchase training from a recognised provider. You will also be given help regarding how you actually use the Apprenticeship Levy portal to locate new apprentices.
How do I apply Apprenticeship Levy Allowance?
During the process of moving your payroll from 2016/17 to 2017/18 tax year you will be prompted to select an Apprenticeship Levy allowance option. You will have 3 option to choose from:
- Select maximum allowance (£15,000)
- No allowance (£0.00)
- Enter Apprenticeship Levy allowance for this company or enter part allowance
What do I do if I have multiple PAYE schemes?
A sole employer will be set a single levy allowance of £15,000. If that employer operates more than one PAYE scheme then they don’t have any additional allowance. They can allocate their full £15,000 allowance across their PAYE schemes as they wish, but an employer with multiple PAYE schemes still has only one total allowance of £15,000.
What if my monthly wage bill varies?
The Government actually expects this, as you pay new staff, pay bonuses, commission etc. The total calculation of the Levy is set to an annual bill to help accommodate this.
How can I actually draw from the levy fund?
Alongside the Apprenticeship Levy, the Government is introducing a new Digital Apprenticeship Service where every employer can register their details. Each apprentice that is taken on will need to be registered on this portal and the system will then work out how much of the Levy your business can draw. This is paid out in the form of a voucher which can be ‘spent’ on training and development.
How long will my vouchers last?
You will need to use your vouchers within 24 months of them appearing in your account.
Who can I spend my vouchers with, and what on?
Vouchers claimed through the Levy can only be spent with registered training providers. A complete list will be provided through your portal so you can choose the best provider for your business.
I still have more questions, what should I do?
Get in touch! To learn more about the Apprenticeship Levy, how it affects your business and what you can do to prepare, book yourself on to one of our IRIS Payroll Year End and Legislation Seminars which are running throughout February and March. You can also visit our dedicated Apprenticeship Levy FAQ page for more information.
The seminars are delivered via a webinar, where you will join the online training session remotely from the comfort of your home or office.
To learn more and to book your place, call today on 0843 357 1836. To check out the dates we’ve got scheduled throughout this month and March, simply click below to see a full list.