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Apprenticeship Levy comes into force

The Apprenticeship Levy has come into force. In summary the levy will require all employers in the UK with an annual wage bill of over £3 million to pay 0.5% of it towards funding apprenticeships. Employers in England can set up an online account to manage their funds and invest in training for apprentices working for them – currently around 100 accounts are being set up every day. The government will then provide a further 10% top up to levy contributions each month into employers’ accounts.

Full details about the Apprenticeship Levy can be found in the Charity Tax Map here.

The Government has also stated that generous support will also be provided for smaller employers with an annual pay bill below £3 million and therefore not required to pay the levy. The Government will pay 90% of the costs of training and assessing their apprentices.

CTG still has concerns that the Apprenticeship Levy will effectively amount to an additional payroll tax for charities, as many organisations do not have (nor require) the number of apprentices to train that would cover their levy contributions. CTG continues to call for the levy to be extended to volunteer training so it is more appropriate for our sector.